Manufacturing Execution System MES PDF

Jürgen Kletti (Ed.
)
Manufacturing Execution Systems – MES
Jürgen Kletti (Ed.)
Manufacturing
Execution Systems – MES
With 100 Figures
123
Editor
Dr.-Ing. Jürgen Kletti (Ed.)

MPDV Mikrolab GmbH
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j.kletti@mpdv.de
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Foreword
The transformation of the classic factory from a production facility into

a modern service center has resulted in management problems for which
many companies are not yet prepared. The economic efficiency of modern
value creation is not a property of the products but rather of the process.
What this means is that the decisive potentials of companies are to be found
not so much in their production capability but in their process capability.
For manufacturers the requirement for process capability, which has in
the meantime become the basis of the certification codes, gives rise in turn
to the requirement that all value-adding processes be geared to the process
result and thus to the customer. A necessary condition of process transpar-
ency is the ability to map the company's value stream in real time, without
the acquisition process involving major outlay – a capability which is be-
yond the dominant ERP systems.
Today modern manufacturing execution systems (MES) can offer real-
time applications. They generate current and even historical maps for pro-
duction equipment and can thus be used as a basis for optimization proc-
esses. As early as the beginning of the 1980s work started on methods of
this kind which were then known as production data acquisition or ma-
chine data collection. But while the main emphasis in the past was on
achieving improvements in machine utilization, today the concern is pre-
dominantly to obtain real-time mapping of the value stream (supply chain).
Here the increasing complexity of production calls for a holistic view of
production and services equipment and facilities: detailed planning, status
detection, quality, performance analysis, material tracking and so on have
to be registered and displayed in an integrated manner.
In the mid-1990s the concept of the manufacturing execution system
developed in the USA from out of these exigencies. A non-profit organiza-
tion with the name of MESA (Manufacturing Execution System Associa-
tion) started standardizing these applications and thereby raised three ap-
plication layers of a production facility into a principle. MESA defines the
level of production itself, the level of production management (in other
words, MES), and the level of corporate management.
Further works of standardization relating to this subject area are already in
the process of development. Accordingly, an ISA S95 has been approved,
VI Foreword
whereby NAMUR, an association of process manufacturers, has come up

with its own guideline for its own particular area of manufacturing.
Very recently too the Verein Deutscher Ingenieure (VDI) has picked up
this topic and is working on issuing a guideline tailored to the particular
concerns of European manufacturers.
The expectations placed upon a manufacturing execution system for in-
creasing performance are correspondingly high. The practitioner will have
a particular interest in topics such as TQM, SIX Sigma, operations plan-
ning or optimized material movements.
Even today the growing interest in this area is indicated by the increas-
ing use of the term “MES” in specialist literature and market surveys not to
mention in work on standardization in which a number of committees are
involved.
The term MES should be methodically systematized in order to give
manufacturers the broadest overview possible of the capabilities and the
different practical possibilities of an MES and thus put them in a position
of exploiting this overview to orient themselves within the broad supply of
goods to the market. In the present book, experienced specialists in the
field throw detailed light on different aspects of an MES without which it
is not possible to run a modern company profitably today.
Gaining control of the processes is more and more becoming a central
requirement for companies if they are to be able to produce profitably even
in a location such as Germany.
Professor Johann Löhn

President of the Steinbeis-Hochschule Berlin
Government commissioner for technology transfer
Baden-Württemberg
Table of contents
1 New ways for the effective factory...................................................... 1

1.1 Requirements for tomorrow’s manufacturing............................. 1
1.2 Production structures .................................................................. 4
1.2.1 Orientation towards metrics ........................................... 4
1.2.2 Control methods ............................................................. 5
1.2.3 Combinations of production structure
and control method......................................................... 7
1.2.4 Weaknesses in traditional PPS systems.......................... 7
1.2.5 Function levels ............................................................... 8
1.2.6 Types of production ....................................................... 10
1.3 Classic IT support in production ................................................ 11
1.4 Manufacturing Execution Systems (MES) ................................. 13
1.4.1 Emergence of the MES concept ..................................... 13
1.4.2 Current standards ........................................................... 17
1.4.3 The ideal MES................................................................ 23
1.4.4 Technical requirements .................................................. 27
1.5 Vertical and horizontal integration ............................................. 29
1.6 Use of an MES system in the company ...................................... 34
1.6.1 Organizational requirements .......................................... 34
1.6.2 Technical requirements .................................................. 34
1.6.3 Economic efficiency....................................................... 34
1.6.4 Support for CIP and current certifications ..................... 35
1.6.5 Definition and tracking of objectives ............................. 36
1.7 Practical examples of potential benefits ..................................... 37
2 MES for process capability ................................................................. 41

2.1 Economic efficiency as a process property................................. 41
2.1.1 The process-oriented approach
of ISO 9001/TS 16949 ................................................... 42
2.1.2 The process potential in figures ..................................... 43
2.2 The process capability of the organization ................................. 44
2.2.1 Identification of systematic errors.................................. 45
2.2.2 Systematic failure processing......................................... 46
2.2.3 Tracking corrective action.............................................. 47
VIII Table of contents
2.3 Process capability in collaboration.............................................. 48

2.3.1 Wasted work ................................................................... 48
2.3.2 Operational target agreements ........................................ 50
2.4 Process capability of information flows ...................................... 50
2.4.1 The company as a paper factory ..................................... 51
2.4.2 Interfaces without value generation ................................ 51
2.4.3 The way to paperless production .................................... 52
2.5 The process capability of flow control ........................................ 54
2.5.1 Deterministic control....................................................... 54
2.5.2 Control with feedback (closed-loop control) .................. 55
2.6 Summary ..................................................................................... 58
Literature ................................................................................................ 60
3 Added value from software.................................................................. 61

3.1 The company as information system ........................................... 61
3.1.1 Information as a production factor.................................. 61
3.1.2 Re-engineering and integration....................................... 62
3.1.3 Information processing in production ............................. 63
3.1.4 Machines as information-processing systems ................. 64
3.2 MES in the capital goods industry .............................................. 65
3.2.1 Characteristics of the capital goods industry .................. 65
3.2.2 MES in the IT software landscape .................................. 66
3.2.3 MES in the technology life cycle .................................... 67
3.2.4 MES as seen by the user ................................................. 69
3.2.5 MES as seen by the market ............................................. 70
3.3 Preparations for MES-implementation........................................ 71
3.3.1 Identification of objectives ............................................. 72
3.3.2 Systematic process development..................................... 72
3.3.3 Estimation of a return on investment .............................. 73
3.3.4 System tuning.................................................................. 74
3.3.5 Introduction of MES in the company.............................. 75
3.3.6 Operation of the MES solution ....................................... 76
3.4 Innovative technologies in the MES environment ...................... 76
3.4.1 The digitized factory ....................................................... 76
3.4.2 The digital factory........................................................... 77
3.4.3 The factory with real-time capability.............................. 78
4 MES: the new class of IT applications................................................ 81

4.1 Introduction and motivation ........................................................ 81
4.2 The current situation in the manufacturing company.................. 82
4.2.1 Tools and systems for the operative level ....................... 82
4.2.2 Manual information procurement and other tools........... 84
4.2.3 Problems in bringing together the data ........................... 86
4.3 The situation as it ought to be ..................................................... 86
4.3.1 Gapless automated data acquisition ................................ 87
4.3.2 The information point for production ............................. 88
Table of contents IX
4.3.3 The concept of the “manufacturing cockpit” ................. 89

4.3.4 Escalation management and workflow........................... 95
4.4 Outlook and further development of MES systems.................... 97
Literature................................................................................................ 98
5 Building an MES system ..................................................................... 99

5.1 Software architecture of an MES system.................................... 100
5.1.1 Basic functions ............................................................... 101
5.1.2 Data layer ....................................................................... 103
5.1.3 Application layer: business objects and methods........... 104
5.1.4 Process mapping............................................................. 105
5.1.5 The advantages of ESA architecture
for MES systems ............................................................ 106
5.2 Interfaces of an MES system ...................................................... 107
5.2.1 Interfaces with higher-level systems .............................. 108
5.2.2 Interfaces for horizontal integration............................... 111
5.2.3 Interfaces with production facilities ............................... 111
5.3 User interfaces of an MES system.............................................. 114
5.3.1 Technologies for user interfaces .................................... 114
5.3.2 User interfaces for configuration, monitoring
and reporting .................................................................. 115
5.3.3 User interfaces for data collection.................................. 116
5.4 Outlook ....................................................................................... 117
6 Integrated production management with MES................................. 119

6.1 MES systems make production management possible ............... 119
6.2 The MES model.......................................................................... 119
6.3 Data analysis: information in an MES system............................ 121
6.4 Operating resources: machine or installation section ................. 122
6.4.1 Order/operation .............................................................. 123
6.4.2 Material .......................................................................... 123
6.4.3 Resources and production tools ..................................... 124
6.4.4 Process values ................................................................ 124
6.4.5 Personnel........................................................................ 125
6.4.6 Inspection and testing characteristic............................... 125
6.5 MES data acquisition functionality ............................................ 126
6.5.1 Data acquisition terminal equipment.............................. 127
6.5.2 Information for the worker............................................. 129
6.5.3 Modularity supports the diversity of data
acquisition dialogs.......................................................... 131
6.5.4 Plausibility in the data acquisition process..................... 132
6.5.5 Which interfaces with the process are best used? .......... 133
6.5.6 Data correction in the MES system................................ 134
6.5.7 Availability and reliability of the MES system .............. 134
X Table of contents
6.6 MES information for production management............................ 135

6.6.1 Transparency due to MES actuality ................................ 136
6.6.2 User-focused analyses..................................................... 137
6.6.3 Production-related target definition ................................ 138
Literature ................................................................................................ 139
7 Detailed planning and control with MES ........................................... 141

7.1 Overview and goals..................................................................... 141
7.1.1 Incorporation of detailed planning and control............... 141
7.1.2 Tasks of detailed planning and control ........................... 143
7.2 Use of MES for detailed planning and control............................ 144
7.2.1 Overview......................................................................... 144
7.2.2 Dealing with primary capacities in MES ........................ 146
7.2.3 Modeling the processes in the MES................................ 149
7.2.4 Personnel: the especially valuable resource.................... 152
7.2.5 Modeling technological aspects ...................................... 152
7.2.6 Strategies for resource allocation.................................... 154
7.2.7 Conflict resolution by simulation and optimization........ 156
7.2.8 Monitoring order execution ............................................ 160
7.2.9 Reactive planning with MES .......................................... 161
7.3 Management of the means of production (resources) ................. 162
7.3.1 Status management ......................................................... 164
7.3.2 Anonymous and individualized resources ...................... 165
7.4 Summary ..................................................................................... 166
8 Quality assurance with MES ............................................................... 169

8.1 Quality in practice ....................................................................... 169
8.2 Planned quality............................................................................ 170
8.2.1 Quality master data in an MES ....................................... 171
8.2.2 Proactive defect prevention with FMEA ........................ 172
8.2.3 Inspection and testing planning: the foundations
of product quality............................................................ 172
8.2.4 Inspection equipment: reducing measurement
uncertainties .................................................................... 175
8.2.5 Supplier rating: optimizing the procurement process ..... 176
8.2.6 Setting up workflows with escalation scenarios ............. 177
8.2.7 Quality planning within production preparation ............. 178
8.3 Integrated quality......................................................................... 180
8.3.1 Quality via information management.............................. 181
8.3.2 Securing supplier quality ................................................ 181
8.3.3 In-process quality assurance ........................................... 182
8.3.4 Optimization of inspection equipment monitoring ......... 183
8.3.5 Transparent complaints management.............................. 184
Table of contents XI
8.4 Documented quality.................................................................... 185

8.4.1 Networking of information ............................................ 186
8.4.2 Using quality data appropriately .................................... 187
8.4.3 Traceability .................................................................... 190
8.5 Analyzed and evaluated quality.................................................. 192
8.5.1 Potential for improvement in production ....................... 193
8.5.2 Learning from complaints .............................................. 194
8.5.3 Six Sigma: putting a stop to waste ................................. 195
8.5.4 Quality information: added value in the MES................ 196
9 Personnel management with MES ..................................................... 199

9.1 Overview .................................................................................... 199
9.2 Staff work time logging.............................................................. 200
9.2.1 Tasks of staff work time logging.................................... 200
9.2.2 Time management in the MES or ERP system .............. 201
9.2.3 Flexibilizing work hours ................................................ 202
9.3 Motivation and personnel management...................................... 204
9.3.1 Performance- and bonus-based wages ........................... 204
9.3.2 Employee qualifications ................................................. 206
9.4 Short-term manpower planning .................................................. 206
9.4.1 Vacation and shift planning ........................................... 207
9.4.2 Checking labor capacities during detailed planning....... 208
9.4.3 Allocating employees to work centers ........................... 209
9.5 Security in the manufacturing company ..................................... 210
9.6 Outlook ....................................................................................... 211
Literature................................................................................................ 212
10 MES with SAP...................................................................................... 213

10.1 Motives ....................................................................................... 213
10.2 Integration of the MES into the SAP environment..................... 214
10.2.1 Development of the MES in SAP history ...................... 214
10.2.2 Requirements for an MES in the SAP
system environment........................................................ 215
10.2.3 Representation of levels in a manufacturing company... 216
10.2.4 Corporate processes in mySAP ERP
and the MES system....................................................... 217
10.3 MES as an integrated solution in the SAP system...................... 221
10.3.1 Importance of SAP NetWeaver for integration
of the MES ..................................................................... 222
10.3.2 Interfaces with mySAP ERP applications ...................... 225
10.3.3 Integration of MES functions via the SAP portal........... 228
10.4 Support for SAP’s Adaptive Manufacturing initiative ............... 230
10.4.1 Scalability of the MES solution ..................................... 230
10.4.2 MES for horizontal integration ...................................... 231
XII Table of contents
10.4.3 Interfacing on the machine and control levels ................ 232

10.4.4 Examples of the integration of MES and mySAP ERP .. 233
10.5 Summary ..................................................................................... 239
11 MES in plastics processing................................................................... 241

11.1 Special features of the plastics industry ...................................... 241
11.2 Usable MES modules .................................................................. 242
11.3 Control station ............................................................................. 244
11.4 Acquisition of machine and production data............................... 245
11.5 Connecting the injection-molding machines ............................... 246
11.6 Visualization and evaluation ....................................................... 247
11.7 Connection between quality assurance and process data ............ 249
11.8 Tool making ................................................................................ 250
11.8.1 Using an MES system to monitor
the maintenance intervals................................................ 250
11.8.2 PDA and control station in tool making.......................... 251
11.9 DNC, batch tracking and mandatory
in-process documentation............................................................ 252
11.10 Management Information System (MIS)..................................... 253
11.11 Return on investment................................................................... 254
11.12 Summary ..................................................................................... 256
Abbreviations................................................................................................. 257
Checklist ......................................................................................................... 259

Preliminary note for the user .................................................................. 259
General criteria ....................................................................................... 260
System concept ....................................................................................... 260
Production............................................................................................... 260
Quality .................................................................................................... 261
Personnel ................................................................................................ 261
Data acquisition ...................................................................................... 262
MES in the SAP environment ................................................................ 262
Updating ................................................................................................. 263
The authors .................................................................................................... 265
Index ............................................................................................................... 271

1 New ways for the effective factory
1.1 Requirements for tomorrow’s manufacturing
The classic factory has been defined by its manufacturing of goods. The
goods and their value have been measured primarily by their material
components. This is no longer adequate today. Increasing globalization is
necessarily leading towards more anonymous products out of long supply
chains and with an increasing complexity to track their origins. This im-
plies a shifted focus from control of production creation (vertical integra-
tion) to control of product perception by the customer (OEM). Customers
today take it for granted that products will be of first-class quality. Anyone
wishing to stand out from the competition in the future needs a strategy
which offers the customer an additional added value, such as, for example,
high flexibility, short delivery times, high delivery reliability, wide range
of variants, shorter product life cycles – properties which are not created
by production but by the processes. The term “adaptive manufacturing”,
which is heard more and more often these days, describes this approach as
“connecting the machines to the markets.”
For this reason many classic manufacturers today already define their
production facilities as a service center, thereby signaling to the customer
that they understand the processing of material into a finished product as
also being a service for the customer. This increase in closeness to the cus-
tomer initially results in cost increases. Modern producers attempt to cancel
out these increased costs by rethinking their vertical integration, in some
cases by using standard components or by sourcing suitable components on
the global market. The modern producer is thus faced with forces which
can be referred to as networking, dynamization and individualization .
The term “networking” means the increasing inter-company coopera-
tion. In today’s public discussion is principle is named globalization.
Thanks to this networking the manufacturer can purchase on the market
the components he needs thus leaving him able to concentrate on his core
competences which he then, in a supply chain management strategy, in-
corporates effectively into the total product manufacturing chain.
Dynamization originates in strong market fluctuations which, driven
by more information and ever more rapidly disseminated information,
2 1 New ways for the effective factory
encourage customers to make rapid changes in their purchasing habits. The

ever faster turning wheel of technological development makes a further
contribution to these effects. Errors are more likely in complex, collabora-
tive processes than in simple, closely coupled processes. The failure man-
agement resulting from this and also the frequent and faster changes in
customer orders further stimulate the dynamics.
The change towards buyer’s markets and greater focusing on the cus-
tomer demands more individualization from manufacturers. What the cus-
tomer wants is a product which is tailored to his requirements. The logical
consequence is an increase in the range of variants which the producing
company must offer to its customer.
Networking, dynamization and individualization create increased risks
and complexities in the production facilities and demand that producers be
capable of change. This turbulence is characterized by new requirements in
the internal processing of orders and also in external market dynamics.
These changed requirements are characterized by stronger external net-
working, by collaboration with multiple and/or with new partners, and by
faster internal structural and technical adaptations. This new process insta-
bility makes manufacturing close to an economic optimum more difficult
and also fosters not only inefficient information management but also out-
dated business processes. The consequence for the customer is poor deliv-
ery reliability and lead times as well as unsatisfactory product quality. In
many cases the manufacturer experiences long delivery times which in
turn result in excessive inventory levels. The consequence is that more
capital is tied up.
The list of effects generated by turbulence and changeability can be con-
tinued. These effects impact on every level in a manufacturing company,
often in different ways with different effects. The consequences of these
effects can be resisted by creating more transparency within the levels and
between the levels, by improving reaction capabilities, and by securing
cost-efficiency.
To increase transparency, there must be greater integration of the busi-
ness processes affected. Impediments and obstructions which still exist
today in communications between the corporate levels of management,
production management and also the production department itself must be
dismantled and removed. Information will need to flow faster and more
effectively within the levels. The vertical integration or continuity from
management to production so often required today should be supplemented
by horizontal integration. Improved reaction capability will develop on this
basis of increased transparency. Faster information means that problems
and unplanned events will be detected faster. This makes faster reaction
possible and remedial action can be taken faster. With these resources,
1.1 Requirements for tomorrow’s manufacturing 3
production planning can be set up which is characterized by short reaction

times and which thus earns its description as a fine planning control sys-
tem with short control cycles.
With this set of tools, deliveries or services can be modified at short no-
tice in an economic and cost-oriented manner thereby complying with
customer for flexibility. But the efficient introduction of changes, a satis-
factory level of adaptability to the changing needs of the company, and the
ability of existing technologies and systems to be readily integrated also
have to be developed and refined in a manufacturing company.
The potential benefits which emerge from these elements – such as bet-
ter customer service due to improved delivery reliability and delivery ca-
pability, as also product quality and information capabilities, cost savings
due to inventory reductions, improved workforce position, motivation aris-
ing from control of production, and so on – supply decisively important
key performance indicators for the current competitive environment.
These three elements in an improvement process – transparency, re-
sponsiveness and cost efficiency – have been partially put into practice in
industry in recent years. Some advances have been made here, particularly
on the level of corporate management. In the commercial departments of
corporate management, changes do not come into effect in seconds, min-
utes or hours but rather in days, weeks or months. The situation is com-
pletely different in the field of production management and automation.
Many short-term activities are required here and they in turn call for tools
that support online ad hoc decisions. Every minute of downtime for a ma-
chine or part of a plant costs money. Every minute of these production
problems eats into profits. In cases of this kind it is very easy to demon-
strate a clear relationship between the benefits and the costs of measures
and tools for preventing or reducing breakdowns.
Today, particularly in production management, the aim of “increasing
transparency, responsiveness and cost efficiency” means that new paths
must be taken and increased effort applied to measures which have already
been introduced. One tool which supports these objectives is the so-called
MES system (manufacturing execution system). MES is a method that has
developed from what tend to be the classic disciplines, such as production
data acquisition, staff work time logging, quality assurance and finite
scheduling. The homogenized and compacted version of these techniques
can be grouped under the heading MES. The aim of an MES is to make the
value-adding processes transparent and on the basis of this transparency to
create not only horizontal but also vertical control cycles. The cycle time of
these control cycles will depend on the tasks being performed and, to take
the example of production, be measured not in days or shifts as is normal in
a traditional ERP environment but rather in multiples of minutes. In this
way production can react quickly and cost-effectively to meet new re-
quirements.
The present book is intended to throw light on various aspects of MES
and the use of MES and should also describe how potentials for improve-
ment can be identified and exploited, even in a heavily automated industry.
1.2 Production structures
The aim of achieving an improvement in economic efficiency is not, of

course, a new demand but is rather a permanent process which has increas-
ingly challenged manufacturing industry over the last few decades. In the
media we only hear about particularly major pushes made in this direction
(such as the case of Ignazio Lopez or jobs being exported from Germany).
Alongside the improvement in processing technology and the reduction in
material and labor costs, this striving for greater efficiency has initially
been met by an improvement in production structures and control methods
with the aim of improving the passage of an order through production. For
this reason new approaches have been developed in recent years which
satisfy demands for shorter lead times and greater flexibility, particularly
with regard to the increasing number of product variants. Some of these
production structures and control methods will be dealt with briefly below.
1.2.1 Orientation towards metrics
Different factors must be taken into account in the selection of suitable

production structures. One important criterion is the production quantity
planned. Due to the high degree of automation, the line structure delivers
the highest productivity but recouping the high investment costs necessi-
tates producing large quantities over long periods. Other important criteria
are flexibility with respect to product change, production of variants, vol-
ume changes, work in progress inventory, working conditions, and so on.
Here it is necessary to identify the maximum benefits by making an
evaluation of the various structures with regard to these criteria.
Shop production
In shop production all machines which carry out the same tasks are
grouped together into shops – for example, all lathes and turning machines
in the turning shop, all milling machines in the milling shop (layout by
machine). In this case the time flow of production is tied to batches. Not
until the last workpiece in a batch has been processed are all members of
1.2 Production structures 5
the batch sent on to the next operation. The result of this in a multi-step
process is an unclear flow of material with long transportation paths, queu-
ing and waiting times, large work in progress inventories and poor compli-
ance with scheduled times. Shop production originated in the pursuit of
high flexibility and simplified layout planning.
Production in decentralized structures

Product- or customer-oriented organizational units are grouped into decen-
tralized structures which include several production stages (the factory in
the factory). The objective is to combine the cost and productivity benefits
of line or continuous production with the high flexibility of shop produc-
tion. The assumption underlying the decentralized structures approach is
that it is easier to coordinate small units since all of the units needed to
carry out the task are grouped together in one area. Decentralized struc-
tures can thus be intensively aligned to specific competitive strategies.
Line flow production

Here machines and operations are organized in accordance with the order in
which a product is processed (layout by product). Due to the fine time coor-
dination and interlinking required for the individual operations (cycle timing)
this structure is very sensitive to breakdowns as well as inflexible product
variations. In addition, installations of this kind have high investment costs
which is why they can be used economically only in large-scale production.
Here line flow production does, however, offer the greatest productivity ad-
vantages over other production structures since queuing and waiting times,
work in progress inventories as well as transportation paths are minimized.
1.2.2 Control methods

The selection of suitable control methods depends to a considerable extent
on the production structure (for example, shop production or flow produc-
tion). However, the type of orders to be processed (for example, customer
or stock order, quantities, number of variants, spread of the orders, and so
on) also plays an important role. In principle a distinction can be drawn
here between the push principle and the pull principle.
Push principle
The push principle means that production orders are generated in a central
production planning and control facility and are then executed in the pro-
duction department. Examples of push methods of this kind are:
MRP II (manufacturing requirement planning)

The MRP II method developed out of MRP I (material requirements
planning) by the incorporation of manpower and machine capacities in
calculations. It is used primarily in normal and small series production
on the shop principle since multistage production structures require an
increased level of planning.
Cumulative number concept
With the cumulative number concept, material movements are recorded
cumulatively over time (actual CN) with the aid of a cumulative number
(CN) and compared with the planned value (target CN). Use of the cu-
mulative number concept requires large production quantities and a lin-
ear production structure. For this reason this method is primarily suit-
able in full-scale and mass production with line or flow production.
Load-dependent order release
Load-dependent order release was developed in particular for one-off
and quantity production on the shop principle of products which have
a large number of variants. It regards machines as hoppers whose fill
levels (number of orders) are controlled.
Pull principle
With the pull principle, items are only produced in response to a customer
demand for them. The customer order generates a requirement in the final
assembly department. This requirement in turn generates a requirement in
pre-assembly, and so on – in other words, the sales order works its way
backwards through production until it reaches material procurement. The
aim of the pull principle is to reduce the control overhead and to make
production more transparent and less inventory-hungry. Examples of pull
methods of this kind are:
Kanban
The kanban method is based on autonomous control cycles between
a consuming station and a producing station. Here the producing station
receives a signal which tells it what parts are needed in what quantity at
what time by the consuming station. The signal is given by means of
kanban cards. Kanban is used predominantly in mass production on
a flow production basis.
CONWIP (constant work-in-process) is based on the kanban system but
still includes the control cycles of several stations found in flow pro-
duction.
Synchronous production
In synchronous production the ideal production line produces with the
same work cycles as the customer or in accordance with customer call-
offs. Chaining the work steps means that it is only necessary to control
a single process step in the entire process chain. The pacemaker process
is the process which is directly controlled by the customer. The aim of
this method is to achieve a continuous flow (one-piece flow).
Agent control
Higher level IT systems determine star dates on the basis of the cus-
tomer dates. On the basis of this information, work pieces, installations
and transportation systems negotiate the process flow decentrally and
autonomously while taking the current state of production into account
at all times.
1.2.3 Combinations of production structure

and control method
As has already been said, not every control method is suitable for every pro-
duction structure. In practice the following combinations are encountered:
Fig. 1.1. Control methods in relation to the production structure (Fraunhofer IITB,
2005)
1.2.4 Weaknesses in traditional PPS systems
Despite some sophisticated control methods, traditional production plan-

ning and control has serious weak points in the planning and scheduling of
production orders. This is why we can see a trend towards pull approaches.
These weak points include:
Planning with uncertain planning input data (processing times, machine

utilization, etc.)
Planning split too coarse due to planning by the week or at best by the
day
Planning without an updated load horizon
Missing or excessively late feedback about progress towards comple-
tion, faults and so on; this means only delayed control is possible
Inflexible as regards rush orders or changes in requirements or dates
Does not take actual capacity utilization into consideration
In the PPS strategies a tendency towards planning can be seen – in other
words, towards a one way street principle without feedback. Transparency
and responsiveness are thus not achieved. In principle an improvement
process involving better planning must end at a specific point. Without
real-time confirmation of completion, the control cycle consisting of the
production plan and production itself will in the best case be run through
once a day since inputs first need to be checked, corrected and incorpo-
rated into the new plan.
1.2.5 Function levels
The production structures and control methods considered in the previous

section are coordinated and organized by the higher levels in a manufactur-
ing company. For a closer examination it would be advisable to subdivide
a company of this kind into its different levels.
Corporate management
The level of corporate management will, of course, be concerned primarily
with commercial duties. From sales and design activities emerges product
range planning and the associated quantity planning. Once quantity plan-
ning has been completed on a customer-, order- or stock-oriented basis, the
order release will be given. As a result of this, or even dependent on it, the
time scheduling and capacity requirements planning must start for produc-
tion. In virtually all cases this planning step will be rough planning – in
other words, using a rough grid commensurate with the processing time
period, the capacities available are examined and also the units to be
manufactured on these capacities. On the basis of the information flowing
back from production the inputs for the next production period or for the
next planning section can be changed if necessary.
Production management
Production management receives the order loading and the corresponding
dates from corporate management and carries out sequencing and loading
planning. This planning step should be referred to as “finite planning”.
Here the orders or operations are scheduled out to the available capacities
with the most exact start dates possible being determined and passed on to
the actual production department. This production management level also
includes collection of the production data with whose help a real-time tar-
get/actual comparison can be carried out between input requirements and
the real information.
All types of resource management are normally carried out on this level.
The preparation of personnel deployment plans is a special task which is
usually performed by production management. Even quality assurance with
its wide range of functions regarding data acquisition and evaluation is
normally a task which falls under production management.
The production level (automation level)

Machine and system control and also stock control are now assigned to the
actual production department. In the same way, transportation control,
maintenance and the actual manufacture of goods are tasks for the produc-
tion level. Further on in this book this level will also be frequently referred
to as the automation level.
Within the context of the present book, examination of production man-
agement plays a central role. This is where flows of material and of infor-
mation intersect decisively in a manufacturing company. Production man-
agement also makes a substantial contribution to value creation. At this
point unsuitable mechanisms may mean that not only no money is earned
but also burned.
Production management determines the logistical performance of a com-
pany, particularly regarding its responsiveness to market influences. More
recent control methods tend to be decentralized and responsibility dele-
gated to lower hierarchy. In this way production management gains more
and more responsibility and importance. Inter-company networking in the
supply chain management environment takes place today more and more
often on the level of actual production or of production management.
Within this book this particular arrangement of levels is intended to serve
as a model for all types of production departments.
1.2.6 Types of production
Three different so-called production types are to be distinguished. These

are: discrete or shop production, process-line production or mass produc-
tion, and the make-to-order manufacturer or plant and equipment manufac-
turer. The distinction is important at this point as further on in the book.
We intend to show how these types of production require MES functional-
ity. A brief summary of the basic characteristics of the three types follows.
Discrete or shop production

Here we have production orders from a series of operations which in some
cases can be regrouped into assemblies. The discrete manufacturer would
prefer transitions between his processing steps to be as short and smooth as
possible. The availability of intermediate products is an important variable,
as is organizing these intermediate products in interim storage facilities.
Specific variables here are resource availability and above all flexibility in
the processing of orders.
Process lines or mass production

The mass, process or line manufacturer links together his systems and ma-
chines to form lines which normally produce large quantities of a product.
Flexible changes in order processing are only possible with qualifications.
The fact that a line runs permanently is of central importance. Due to the
complexity of installations, shifting orders to different resources is often
impossible or if so, only to a limited extent. This means that a special logic
will also have to be taken into account in production planning.
Make-to-order production/plant and equipment manufacturing

The make-to-order manufacturer or plant and equipment manufacturing
typically has comprehensive bills of material which are often processed in
manufacturing cells or in dedicated shops. These manufacturing cells have
a certain amount of independence which means that sometimes there can
be transitions between them which are not time-critical. Depending on the
products being manufactured this kind of manufacturer may also have full-
scale or small-series production facilities.
The relative closeness of deadlines shown in the diagram is intended to
provide a qualitative representation of the different time horizons within
which the three levels carry out their tasks. The range extends from long-
term in ERP production range planning to virtually real-time or online on
the automation level.
1.3 Classic IT support in production 11
Fig. 1.2. The three principle types of production in manufacturing industry. Each
of these types has an ERP, an MES and an automation level.
1.3 Classic IT support in production
In the early years of information technology, manufacturing enterprises

were mainly “controlled” by commercially oriented systems. It was a gi-
gantic step forward to automate classic manually oriented commercial
services and to manage bookkeeping, inventory and orders received elec-
tronically. In the next stage of this process of automation it was possible to
provide some of the above-mentioned production structures and control
methods with support from so-called EDP systems. The milestones here
were detailed planning of orders, resolution of orders into individual op-
erations or sequences of operations, and the breaking down of products
into individual assemblies. Supervisors in production were supplied with
lists which contained sales planning information and the customer orders
to be produced. Consumption of time, materials and other resources were
reported back to the EDP system from production and this information
recorded there – a complex method which was also likely to be encum-
bered with errors. Simpler and better was to send a status report once indi-
vidual departments started to be equipped with dedicated data collection
systems. In this way the EDP side was provided with a production data
acquisition facility, the personnel department with staff work-time logging
and the quality assurance department with a so-called CAQ system. It was
possible to achieve considerable reductions in the cost of data acquisition

and the different expenditures on this could be assigned to individual
products or production orders more accurately than previously as regarding
their origins.
These mechanisms, however, only covered the tasks to be performed by
corporate management. Production management itself continued to be
supplied as before with the corresponding lists, order-accompanying
documents, material-accompanying documents, and so on. Although status
reports no longer had to be manually recorded, checked for plausibility and
corrected, they were however only available in a limited scope for produc-
tion personnel.
As has already been described in our first section, there have been dras-
tic changes in recent decades in the requirements made of the production
department. Process instability and the compulsion towards fast change
have an effect on the manufacturer to position his production close to an
economic optimum. They demand that he has a powerful information
management capability. If the manufacturer cannot provide these capabili-
ties fast enough, the result will be inefficient business processes which in
turn lead to poor on-time delivery performance, poor delivery times, unsat-
isfactory product quality, long lead times and excessively high inventory
levels. In this regard, ERP/PPS systems have retained a high proportion of
their old characteristics even until today. They do not, for example, sup-
port hierarchization and separation into levels as would be required in
a production facility. The focus of all instances of optimization relates to
planning – in other words, the “one-way street principle” and neglects
control capability. Even now, the control cycles of an ERP system are
longer than a shift while the production scheduler on the spot actually
needs control cycles of the order of several minutes. Control cycles this
fast are not to be found in an ERP-supported manufacturing organization.
For this reason open control chains are predominant. The information
flowing back from production is in some cases not available in a processed
form until the next shift which means that it cannot be used as online in-
formation by the persons in charge in production.
Certain aspects of this problem area are defused into APS functionalities
(Advanced Planning and Scheduling). Here the control cycles do not even
last a week but can be reduced to one or two days. However even with
APS we still are faced with the problem that control mechanisms within
a shift or a day are only possible to a very limited extent and that the focus
still remains on load planning and less on the control of production.
What we can compare with the APS functions are industry specific con-
trol stations. Here planning can be carried out not only almost in real time
but also oriented to a certain extent to the technology. A typical control
1.4 Manufacturing Execution Systems (MES) 13
station takes into account aspects relating to the particular branch of indus-
try such as, for example, the color sequence in injection molding or the
suitability of tools and machine combinations for producing specific arti-
cles. But this control station approach still can only deliver a limited
amount of improvement. If the current actual situation is not included in
the corresponding new planning, we do not have a control facility here but
rather a planning facility, as previously. If ERP-based planning is referred
to as rough planning, the use of APS or control-station–oriented planning
means that so-called detailed planning can be achieved.
More detailed and dedicated functionalities, such as online display of
current states, display of utilization ratios, online interpretation of regis-
tered and unsatisfactory qualities, and also the display of incorrect states
are missing in control station. Evaluations which tell you tomorrow what
you could have done better today are only of interest in a statistical respec-
tively historical view.
At this point even the term “transparency” takes on a new meaning.
Transparency in modern production no longer only means the ability to
comprehend past history without omission or gaps and from this to derive
recommendations for future actions. Today, transparency also means visu-
alizing realities in real time, drawing conclusions from this, and then
communicating recommendations to the appropriate persons in order to put
an immediate end to incorrect states.
1.4 Manufacturing Execution Systems (MES)

1.4.1 Emergence of the MES concept
The origins of the MES concept are to be found in the data collection sys-
tems of the early 1980s. The various disciplines in corporate management
such as production planning, personnel, and quality assurance were fur-
nished with dedicated data collection systems. This situation is shown in
the following diagram: task areas which are almost mutually independent
are equipped with special data collection systems.
With the rise of the CIM concept (Computer Integrated Manufacturing)
a start was made on reproducing the interdependencies of these task areas
in the IT systems as well. Production, personnel and quality were no
longer seen as completely independent but rather data crossovers were
permitted from one task to another. Unfortunately this approach, correct as
it was in principle, did not emerge as a real and strong IT discipline. Trivi-
alization of the problem definition and a misuse of the term by smaller
system vendors in the sense that with time every data collection terminal
Fig. 1.3. Each area of activity in corporate management has a particular data col-
lection method assigned to it which is also independent of the others
was labeled a CIM system. In this way CIM had spoiled its standardization
potential as a problem-solving IT discipline for production.
In the early and mid-1990s the manufacturers of data collection systems
commenced upgrading their in some cases specialized systems (labor time,
PDA, CAQ, DNC, and so on) by adding features from associated fields
(for example: staff work time logging with PDA, PDA together with
MDE). With a small number of combination systems of this kind it was
already possible to put together a data collection (and sometimes a data
evaluation) system for many functional areas of a manufacturing company.
The system components were, however, independent of each other and
synchronizing them required major work on interfacing. Over the course of
time three groups of data collection/evaluation systems formed. From the
independent data collection systems, combination systems emerged, some
of which performed several tasks. All in all, the functionality of these
combination systems describes the functional scope of MES today:
For production matters: PDA, MDE, DNC, control station;
For personnel matters: staff work time logging, access control, short-
term manpower planning;
For quality assurance matters: CAQ, measured data acquisition.
In the real world of production these three task areas cannot be sepa-
rated from each other. Production accordingly needs suitable personnel to
Fig. 1.4. MES integrates originally separate data collection systems
Fig. 1.5. Mutually independent data collection systems were networked and in
some cases connected to corporate management and automation via uniform inter-
faces
be able to produce and must know as fast as possible about the level of
quality it is producing. If mutually independent systems exchange their
data via interfaces or if data exchange actually takes place via systems on
the corporate level, too much of the time is lost which really ought to be
available to allow an effective reaction. Therefore the demand arose that
systems must be more connected or even horizontally integrated. To point
out straight: only a few systems available on today’s market support this
kind of deep horizontal integration.
Networked data acquisition and evaluation systems make it possible to
homogenize data exchange with the ERP system or with the automation
level. Here data is received from or sent to external systems via standard-
ized interface mechanisms. Provided these basic conditions of networking
and of unified interface technology are satisfied, data collection systems
are already coming close to the MES concept. Systems of this kind thus
support manufacturing operations by complying with the so-called 6 R’s
rule which states:
A product will not be created in the most economically efficient

manner unless the right resources are available in the right quantity
at the right place at the right time with the right quality and with the
right costs throughout the entire business process.
If the networked data collection systems are supplemented with elements

of quality assurance, document management document preparation and
also performance analysis, the whole can already be regarded as a powerful
MES system. It is now possible to evaluate unexpectedly arising production
problems to be evaluated in real time and with the appropriate counter
measures. As long as this condition is not satisfied cannot have a well-
grounded production control system on the basis of an online image of pro-
duction. Figure 1.6 shows technology- and situation-dependent decision-
making requirements as a function of processing time. The more closely
the delivery date for an order approaches, the higher will be the require-
ment to make “corrector” decisions faster and as a function of available
resources. This is therefore less a planning task but rather one of short-term
control, and this shifts the responsibility from the ERP to the MES level.
Accordingly, at the beginning of processing, the ERP system plans an order
load on the basis of an average capacity. The extent to which planning deci-
sions are dependent on situations or technology is relatively low. The closer
the delivery dates of an order load approach, the more it will become neces-
sary to make adaptations in response to unforeseen problems. The closer
the delivery date approaches the more this control function will be depend-
ent on technology, situation and remaining capacities.
Fig. 1.6. Dependence of control requirements on planning time
1.4.2 Current standards
The subject of MES has been taken up by a number of institutions which

are attempting, to protect the term MES against trivialization. Various
implementations types may be found and in the present context only the
two most important ones here. MES for the process industry and MES for
discrete industry. In the first case, machine and plant control systems will
form a very great part of MES. In the second case, MES is more an online
information system, a feedback and control system for production. Of the
attempts to achieve standardization which we have mentioned, only a few
need to be discussed here:
MESA
MESA (Manufacturing Execution Solutions Association) already has the
concept as part of its name and as the first organization to adopt this con-
cept is probably the most experienced to report on it. MESA’s approach
here is a very pragmatic one and describes twelve function groups which
are required for an effective support of production management. These
function groups are:
Detailed planning (operation/detailed scheduling)

Sequence and time optimization of the orders finely tuned to the perform-
ance of the machines including their finite capacity and to other resources.
Resource management (resource allocation and status)
Management and monitoring of resources, such as machines, tools, and
so on.
Registration and display of the current status of resources
Document management (document control)
Management and distribution of product, process, design or order in-
formation as well as work instructions which help secure quality.
Material management (dispatching production units)
Management of the input materials and intermediate products used in
production, this in some cases being for the purpose of documenting
material consumers.
Performance analysis
Comparison and evaluation of measured and recorded actual values for
installations or areas against operational targets, customer targets, etc.
Order management (labor management)
Control and definition of operations and dispatching to work centers and
personnel.
Maintenance management such as maintenance and servicing
Planning and implementation of suitable measures aimed at enabling
machines and installations to meet their performance targets.
Process management
Control and management of the workflow in a production facility in ac-
cordance with the planned and current loads and specifications.
Quality management
Recording, tracking and analysis of the product and process, and verifi-
cation against ideal values.
Data collection and acquisition
Visualization, recording, collection and organization of process data, of
material and raw materials, of personnel handling, of machine functions
and their control.
Product tracking and genealogy
Documentation of all events connected with the creation of a product.
Recording details of the input materials and ambient conditions.
All of these function groups or reasonable combinations of them can
form a total MES solution. At the 2004 MESA conference held near Chi-
cago the term C-MES (collaborative MES) was coined. MESA’s own MES
functions as described above were redesigned and in some cases merged or
given modified meanings. Here MES not only serves as an intermediary
Fig. 1.7. The function structure of the MESA model
between automation and corporate management but it is also seen as a data

and information turntable or hub. In this instance MESA goes so far as to
regard C-MES as the integration platform within a company. According to
this approach, even business, technical and logistical functionalities are just
users accessing the MES platform. No doubt this is a very broad interpreta-
tion. In a manufacturing company, production is however the central key
element and it must therefore be regarded as not entirely absurd to group all
services around this important aspect. MES is here seen not only as
a collection of functions in production management but also as an integra-
tional hub for information throughout the company. At the 2004 MESA
conference MES was also presented as an important instrument in the com-
petitive struggle. According to this MES is supposed to give its users the
advantages they need to be able to survive in international competition.
ISA S 95
A committee consisting of about 200 users and manufacturers has started
to define the ISA S 95 standard on the basis of the ISA S 88 version. One
aim here is to define what is meant by an MES. The term MOS – manufac-
turing operation system – was coined here as well. ISA S 95 is based on
a 3-level structure: corporate management, MOS/MES and the actual auto-
mation level. The automation level itself is divided into three different
types. Type 1 is so-called “continuous or process manufacturing”. Type 2
is so-called “batch manufacturing”. By this is meant batch- or lot-oriented
continuous manufacturing. Type 3 is “discrete manufacturing” – in other
words, item-oriented manufacturing. ISA S 95 deals extensively with the
subject of interfacing between Level 1 and Level 2 and defines it in Parts 1
and 2 of the standard. Part 3 is concerned with activities within Level 2 –
in other words, within MOS/MES.
What can be seen as the main aspects here are production management
itself, data acquisition, the interfaces with the automation level, failure
management and close-to-production statistics. Requirements regarding
the data structures and the data models are very pronounced in S 95.
Activity models are defined for the necessary activities within the
MOS/MES level. The first models are already available, for example, for
Fig. 1.8. The ISA 3-layer architecture

plant maintenance operations, quality assurance operations and for the

production activities themselves. A very clear model structure is used for
these activity models as well. Due to this very principle-based approach to
MES, S 95 is more suitable for large systems which in many instances –
for example, within a concern – have a certain degree of standardization.
In daily project work, the application of the quite theoretical principles of
ISA S 95 is more of a burden. Notwithstanding this, the S 95 concept is
suitable for use as a design guide for some basic structures. ISA here de-
scribes a 3-layer architecture and introduces not only the term MES but
also the term manufacturing operation system (MOS) . The manufacturing
methods distinguished are discrete manufacturing, continuous manufactur-
ing and so-called batch manufacturing.
NAMUR
NAMUR is a group of end users particularly involved with systems in the
process industry (chemical or pharmaceutical industry). NAMUR’s rec-
ommendations are based on the ISA S 95 definition and the group goes
beyond the standard itself to make more concrete definitions. Functions
and information flows are described in the form they take in the process
Fig. 1.9. In its recommendations the NAMUR organization provides a very de-
tailed overview of the functionalities best implemented in the process industry
industry in particular. Even the line separating the actual automation level
and MES is not so clearly marked here. The probable reason for this is that
in the process industry important parts of production management have to
be mapped into the machine or plant control systems themselves before
quality or effectiveness targets can be reached.
In the case of a few large installations within a plant, even the boundary
between rough planning and detailed planning, or medium-term and short-
term planning, is not to be drawn as distinctly as in a shop-oriented pro-
duction environment where there is a disproportionately greater possibility
of product variants in production. The NAMUR recommendations thus
represent good practical information for setting up MES systems in the
process-oriented environment.
VDI
In 2004 the VDI (Verein Deutsche Ingenieure), on the basis of the above-
mentioned standards and of current findings and market developments,
started work on defining the term MES in a VDI guideline . A special con-
cern of this guideline is to give the term MES a fixed meaning and thus
prevent it from being misused by certain system vendors, who tend to
jump on every new “buzz word” for pure marketing purposes. Target is to
keep up a strong and benefit oriented perception in the eyes of manufactur-
ing industry leaders. This guideline seeks to draw a distinction in MES
requirements and in MES functions between the various types of manufac-
turing. The highly automated line-production manufacturer will have func-
tion requirements which are different from those of the small-series manu-
facturer. In its structure the guideline is not primarily concerned with the
functions which an MES system should provide but seeks rather to define
the tasks which an MES system should perform in a manufacturing enter-
prise. In the organization of the guideline, special care was taken with the
applicability of this recommendation. In this regard the terminology was
expressly selected to correspond to that actually used in practice.
The tasks which an MES system should perform in the view of the VDI
are the following:
Detailed planning and detailed scheduling control
Operating resources management
Material management
Personnel management
Data acquisition and processing
Interface management
Performance analysis
Quality management
Information management
1.4.3 The ideal MES
When we consider the tasks we have so far described, tasks which an MES
should perform within the context of different control strategies and differ-
ent kinds of manufacturing types, the question arises as to what the ideal
MES is. Is there an ideal MES anyway?
Throughout all manufacturing industries, “yes” will certainly not be the
answer to this question. Nevertheless an attempt should still be made to
sketch out the functionalities an MES should ideally have for the environ-
ment of discrete manufacturing or even of batch-oriented manufacturing.
The “working area” of an MES will, of course, extend from interfacing
with corporate management applications as far as the deepest depths of
data acquisition, communication with industrial systems and the provision
of data for machine controllers or influencing the machine controllers di-
rectly. This extensive operational area, which not only includes a compre-
hensive range of different topics but which must also cover different time
levels, ranging from days and weeks down to seconds, also calls for
a tiered examination of the individual functionalities. This examination can
thus be subdivided into the following areas:
The functionalities of an MES itself
Communication with corporate management applications
Communication with the manufacturing environment
As a rule a PPS covers three function groups: production, quality and per-
sonnel. Within these function groups powerful modules are available which
can be activated and used depending on requirements. A basic system
ensures that all modules are linked together in real time and furthermore
provides intermodular functionalities. Another important function is acting
as the information hub.
In an analogous manner to these function groups in the PPS/ERP sys-
tem, an MES can also be divided into three function groups. These are
primarily the functionalities for production, the functionalities for quality
and the functionalities for personnel allocation. To prevent these functions
from appearing rather too abstract, we shall use the descriptions and in
some cases the designations used in the classic definitions of the modules
from which the MES developed.
Fig. 1.10. MES function groups
Function group: production

The function group “production” can include the following modules:
PDA: production data acquisition
Here order- and person-related times and quantities are recorded. In the
quantities a distinction is drawn between conforming items and scrap
and also scrap categories. It is also possible to directly record material
consumption and wear and tear on operating resources or process mate-
rials and associate them with the corresponding orders. The data which
have accumulated over shifts, days or weeks are prepared correspond-
ingly and then made available to corporate management applications.
Detailed, real-time displays and analyses can be prepared in parallel
with this for organizational functions in production.
MDC: machine data collection
Machines or other operational resources are managed in this group.
Status data can be acquired manually and automatically via comprehen-
sive systematics and subsequently be assigned to resources or resource
groups. The data can then be supplied here not only by conventional
terminals but also by industrial bus systems. Automated registration of
quantities via counters, via balances, scales and comparable equipment
should also be supported. The data so acquired can then be supplied in
a condensed form to corporate management as a basis for effectiveness
statements but also, in their detailed form, permit analysis of points of

weakness within production.
Control station, planning table
These functionalities are the subject of vigorous discussion. On one
hand, ERP systems via their APS functions offer planning possibilities
within a shift. In the case of the control station and planning table mod-
ules in an MES system the emphasis is even more on preparing techno-
logically feasible plans whereby the feasibility should also be assessed
on the basis of a current situation. It is a waste of time making plans
whose likelihood of being put into action is relatively low. From this it
follows that the more detail and precision are required for planning, the
more the plan must be related to current situations. Here the detailed
planning modules of an MES should not only allow manual interventions
which are simple from the operator’s point of view but also offer support
for fully-automated loading as well as simulation and optimization.
TRM, DNC (tool and resource management and transmission of ma-
chine settings)
An MES should be able to manage tools and other auxiliary materials
and equipment on a technically oriented basis. It is less a matter here of
managing inventory (as is necessary and normal in the field of corporate
management) but much more a matter of the technical state of operating
resources, of current availabilities, of managing compatibilities with
machines and the qualitative evaluation of these auxiliary resources.
From the direct proximity to machine data collection, possibilities also
emerge for preventive maintenance and thus for being an effective
means of being able to reduce the occurrence of unforeseen downtimes.
MPL: material and production logistics
A particularly important point in production is those materials which are
in circulation or being held in interim storage facilities. Here a material
and production logistics (MPL) module helps to keep an overview and
to initiate transportation activities at the right time. A function of this
kind should not be confused with a warehouse management function.
Instead it is exclusively concerned with WIP (work in progress) – in
other words, the materials which are circulating outside the classic stor-
age facility. MPL supplies information about the quantities which are
currently in circulation.
Function group: quality

The quality function group in the sense of an operative quality assurance
should not be confused with the kind of quality management offered by,
for example, the major ERP systems and which is to be understood as

a company-wide quality management system which plans and administers.
SPC: statistical process control. SPC is concerned with connecting up
measuring equipment to allow the specific acquisition of measured val-
ues, online comparison of the measured values against a set-point value,
and the immediate output of warnings should the two values differ by
earlier specified levels of tolerance. Naturally, SPC saves these random
samples and permits tracking of certain trends. These trends can also be
displayed directly online in the production facility and thus identify and
prevent any production which might have malfunctions.
NCM: non-conformance management. Here products which are the
subject of complaints are traced back on the basis of technical aspects,
manufacturing conditions, and input materials. Countermeasures are in-
troduced and tracked via a response measures system.
Incoming goods. In this context, the incoming and outgoing goods func-
tion is less the rating of suppliers as is normal in QM but rather the spe-
cific registration of delivered goods or of dispatched goods, the verifica-
tion of batch numbering, and an online alarm facility if certain values
are out of tolerance.
Inspection equipment management is directly comparable with TRM
from the function group “production”. Here inspection, measuring and
test equipment is managed and it is ensured that they meet the required
standards and that they can also be used for the corresponding tests and
inspections. This information must, of course, be available with imme-
diate access during the inspection and testing procedures.
PDP. An unusual feature in this context is the process data processing
module. This implements the proposition that quality is not simply
a property of the product but that quality also depends on the circum-
stances of production. For example, the pressures and temperatures used
in the production process are of decisive importance to quality and for
this reason an MES should also have the capability of acquiring process
values directly, verifying them against tolerance or intervention limits,
and in the event of errors recommending countermeasures.
Function group: Human Resources

Staff work time logging. Throughout its history the human resources
function group has always been very closely attached to corporate man-
agement. A series of elegant simplifications emerges for personnel allo-
cation and personnel management in production when production-
related personnel handling is mapped into the MES system. The staff
work time logging module covers clocking-in/clocking-out data as well

as absence times and can also keep month-based time accounts where
this would be useful. This approach would be particularly ideal when
labor capacities in production facilities play an important role (as is very
often the case) and these labor capacities have to be scheduled in
a timely and efficient manner.
Incentive wages. Staff work time logging in the MES deploys its strengths
when bonus systems need to be implemented. Due to its direct proximity to
production data acquisition, the incentive wages calculation module can
very effectively create the connection between absence times and work
order times and thus greatly simplify calculation of performance levels.
Short-term manpower planning. With the short-term manpower plan-
ning module it is possible, in a similar manner to the planning table in
the production function group, to obtain an overview of active personnel
and to prepare the corresponding personnel schedules in an elegant
manner or even with the aid of automatic functions, these schedules tak-
ing into account the loading situations on a departmental, company or
plant level. Once again it is true to say that plans to be implemented at
short notice can only be effectively drawn up on the basis of an up-to-
date image of production.
Access control. If staff work time logging has been integrated into the
MES, one simple side-effect of this is that access control in the produc-
tion facility can also be implemented via the access control module.
Escalation management. Other mechanisms can be incorporated in the
overall concept of an MES to make prompt reaction possible and,
should limit values (what is meant here in the broadest sense is qualities,
utilization ratios, downtimes, and so on) be violated, to make it possible
to automatically implement the corresponding escalations or alarms and
thus bring about a considerable reduction in how long faulty operational
states last. An escalation management capability provides support here
for production controlling and the operative level.
1.4.4 Technical requirements
Data storage
In an MES, data storage should always be right up to date technically and
use standardized databases. One especially important point is the adapta-
bility of an MES. Production systems are structured in various ways. Proc-
esses in different production systems cover a very wide range. A standard
solution can scarcely be powerful enough for it to be possible to make all
conceivable modifications via parameters. In addition, the complexity of
a parameterization must be readily comprehensible. The happy medium

here is parameterization which can still be carried out by users coupled
with the possibility of controlling processing instances with the aid of suit-
able resources and developing one’s own applications. Here the modern
user can expect an MES system to include a solution designer which al-
lows him to develop his own applications on different levels and to incor-
porate them into the menu system. Straightforward command lines should
also enable the user to influence processing instances in the MES so as to
obtain his results as effectively as possible. As far as displaying informa-
tion is concerned, well-parameterized analyses should, of course, be seam-
lessly available. These analyses should also be configurable within
a reasonable framework on a user-specific basis.
Communication with corporate management

An MES must have the appropriate interfaces which as a standard feature
can communicate with the most common ERP, personnel and QM systems
on the market. In all cases where the products concerned tend to be atypi-
cal, an MES should provide easily parametrizable interfaces which can be
adjusted easily.
Communication with production management

The present-day manufacturing environment does, of course, offer a wide
range of production facilities from which an MES must not only tap off
data but conversely also supply data in order to influence this environment.
Connections with machines and weighing devices are used for acquiring
data regarding quantities, qualities and even points of weakness. Libraries
are maintained here which allow a straightforward connection even to non-
standardized products. More and more frequently, commercially available
machine and machining centers are connected via their own industrial bus
systems. An MES has the communication modules needed for reading the
desired data from these bus systems. Important buzz words here – which
are also dealt with in the chapters which follow – are OPC and, for exam-
ple, Euromap 63, as also certain manufacturer-specific systems.
Data collection terminals play a very important role in MES systems. In
the past they were plain data collection devices but today they are more and
more becoming information media as well. For this reason a powerful MES
should support not only simple input devices but also PC-based input and
information stations. In the case of the more complex terminals and PC-
based systems, today’s user can expect a user-friendly information and data
collection interface as well as plausibility checking which signals faulty
states or erroneous inputs immediately upon input. Here PC functionality is
1.5 Vertical and horizontal integration 29
used to transmit directly by electronic means everything which is still to

a great extent circulated in paper form through the production facility.
The function groups and individual modules shown here should be taken
as examples but today do nevertheless represent a major part of what
a powerful MES system should offer the user. At this point an important
issue still needs to be made: an MES should be structured on a modular
basis so that it can be introduced gradually as required and progress in
familiarization with its functionalities is made easier.
1.5 Vertical and horizontal integration
In the past a two-layer model arose automatically from the two levels of
automation and ERP. In most cases information was exchanged manually
between the two layers.
The connection between the levels of corporate management and of
production was thus a very indirect one and communication cycles were
designed with a resolution of several days. With the development of the
MES concept, even production management, as seen from the IT side,
became a distinct discipline. It has now become possible to assign really
specific fields of action to the three levels of corporate management, pro-
duction management and production. In its dealings with ERP or PPS,
corporate managements tend to work on a long-term basis with a resolu-
tion of weeks or months. Rough production planning deals with a medium-
term range of weeks or days, while detailed planning – also known as load
planning – acts in the short term in days and shifts. Decisions taken within
production management must be made within a time range extending from
shifts down to minutes while automation with its machine and plant con-
trol systems needs, of course, to react within minutes or even seconds.
The corresponding diagram symbolizes a control characteristic within
the different levels whereby the control cycles run within the time resolu-
tions shown. There are, of course, no precise boundaries between the three
levels of a manufacturing company. Accordingly, between ERP and MES
we find the APS (advanced planning and scheduling) functions which,
depending on the type of production, tend to be closer to ERP or to MES.
Just as fuzzy is the demarcation between the MES and automation. The
presence of functions such as data acquisition and the transmission of ma-
chine settings alone creates a tight connection between the two levels
which should still nevertheless be regarded as separate levels and whose
character tends to be related to planning on the one hand and to technical
implementation on the other.
In the first sections of this chapter three different types of production are
examined. Figure 1.11 seeks to answer qualitatively the question “How
much does each production type need MES?”
As we have already said, the functionalities of APS and of system control
are located in the overlap areas of the three corporate levels. For the sake of
clarity we can also say that in the demarcation between ERP and MES func-
tionalities, MES tends to act with a technological orientation and in real time
while activities in ERP tend to be commercial and cut to the medium term.
Not only that but the three MES levels of a manufacturing company
work with completely different time horizons. Within these time horizons
they are autonomous control systems whose control cycle is oriented by
the corresponding horizon.
The definition of a discrete type of production indicates that in the proc-
esses there are many degrees of freedoms with the aid of which
a production order can be channeled through production. Of course, de-
grees of freedom also mean many opportunities for long transfer times,
waiting times and inefficient order sequences.
Situation- and technology-oriented planning aids are required here which
enable production management to react swiftly and appropriately to errors.
An MES covers part of the APS functionalities at this point. At the border
with automation the MES permits direct data tapping within production.
The situation is somewhat different with mass production and assembly
line production. Here the difference between rough and detailed planning
Fig. 1.11. Requirements for MES penetration within the company

is less than in discrete manufacturing. Relatively long-running orders and

lengthy retooling times rule out short-term reactions and thus automati-
cally make medium-term production schedules necessary. A major part of
short-term activities is handled on the automation level – in other words, in
the machine and plant control systems. With this type of production the
automation level is very powerfully developed. This reduces the planning
portion of the MES to a relatively narrow field which is limited to a short-
term and technology-oriented situation presentation and to evaluations
relating to times, faults and qualities.
For the make-to-order manufacturer the resolution of large bills of mate-
rial is a theme of particular interest. His business is governed by long-
running orders. In such a case, a short-term, reactive detailed planning
capability will only be of any use in make-to-stock production areas.
A major part of automation is also found in these areas, apart from, of
course, complex machining centers in which extensive machining activi-
ties are carried out on individual parts. Here the MES part will be limited
to the field of small-batch products and to time recording and project time
recording inside the plant engineering and construction operation itself.
Different types of production need different MES functionalities and
even need MES implementations of different levels of capability. Fig-
ure 1.12 shows the extent to which MES functions can be covered by ERP
or automation or can extend into these areas.
Fig. 1.12. MES requirements by type of manufacturing

With the 3-level structure we have described it has been possible, using
the MES as a linking element between corporate management and produc-
tion, to achieve vertical integration throughout. In the IT world, with
a model of this kind there is now no necessity for any instances of modal
fragmentation in which protracted and time-shifted manual recording and
data acquisition routines prevent information exchange in real time. Via the
MES the ERP level can now supply production with up-to-date information
in real time. Via the MES, ERP receives back correctly prepared informa-
tion at the right time. However, at this point the MES does supply produc-
tion management in real time with the technology- and situation-oriented
information which is needed for a timely response to faults and malfunc-
tions or to keep fault conditions as short-lasting as possible. Despite the
tight coupling afforded by vertical integration the three time levels are de-
coupled to the extent that each level can act correctly and the company as
a whole can still map time domains ranging from long-term to online.
The attention currently being given to vertical integration shows how im-
portant the role of the MES is in the architecture of a company. According to
what has already been said, within production management – in other words,
in the domain of the MES – there are three function groups: production,
Fig. 1.13. Vertical integration ensures that the different levels in the company are
supplied at the right time with information (in the way they need it) from the other
levels
personnel and quality. In very few cases indeed are these function groups
independent of each other. To manufacture something, the right personnel
are needed at the right time and this expensive resource, the individual,
should be employed as effectively as possible at the right place. In produc-
tion, parts can be produced with different qualities and these need to be in-
spected. This short list alone demonstrates that production management, if it
is to function effectively, must attend to all three function groups more or
less simultaneously. From this arises the demand that these three function
groups need to be connected very closely together. According to this, the IT
system which maps these functionalities should act in the most uniform
manner possible and be based on a single data pool. This prevents duplicated
acquisition of data, redundant master data and transaction data.
This so-called horizontal integration is thus an important requirement
whereby an MES system provides production management with effective
support. The above considerations show how important this integration
mechanism (the MES system) is to vertical integration in a manufacturing
organization. Vertical integration is an important requirement if a manu-
facturer is to enjoy a competitive future.
Fig. 1.14. Vertical integration is important for the effective functioning of the
entire company. Horizontal integration in the MES domain is a special instance of
implementation and permits effective working with the different function groups
in an MES
1.6 Use of an MES system in the company

1.6.1 Organizational requirements
The use of an MES in the company depends less on the size of the com-
pany or the particular industry but rather on the production structure (shop
production, production segments, assembly line/flow production, etc.) and
the type of production (non-repetitive production, one-off and small-series
production, quantity production, mass production). While the main reason
for using an MES in the case of multistage shop production (turning shop,
milling shop, electroplating shop, etc.) is to improve the interplay between
the individual processing steps and thus the passage of the order through
production, the emphasis in the case of mass production is certainly on
increasing the degree of utilization of individual production lines. Due to
its modular structure, MES can be easily adapted to the specific production
environment and its task demands. Within the context of a planned MES
project it is therefore important to first ascertain what initial situation (pro-
duction structure and type) applies. The second step should be to find out
how production planning and control is currently being carried out and
how this could be expanded by MES functionalities.
1.6.2 Technical requirements
The technical incorporation of an MES system in the company requires

a corporate network (LAN) with which the management level, production
management and production itself can intercommunicate. In this way MES
servers and clients can be integrated into the corporate network. Data ex-
change with higher-level planning systems (ERP, PPS, etc.) takes place via
standardized interfaces. Information on the production level is acquired ei-
ther manually (machine operator at data terminals) or automatically by ma-
chine connections via machine interfaces (for example, OPC, Euromap, etc.).
1.6.3 Economic efficiency
Process capability
Alongside product quality many companies have recognized process quality
as offering further potential for greater operational efficiency in production.
In an examination of economic efficiency, the first step should be to define
which process-oriented objectives are to be achieved by the use of an MES.
Goals of this kind could be, for example, a reduction in the lead time, an
increase in machine utilization, an improvement in delivery reliability,
1.6 Use of an MES system in the company 35
a reduction in work in progress inventories or a reduction in defect costs.

On the basis of the objectives which have been defined it will be possible to
investigate in concrete terms the potential for economic improvement. Ex-
amples of potentials of this kind include:
Increasing machine utilization

In the metal-working industry the average machine utilization is often
lower than assumed but planning and calculations are actually based on
a higher assumed utilization. Systematic recording and evaluation of all
instances of unscheduled downtime with the aid of an MES system helps
to reveal the causes of downtime, remove them, and thus considerably
improve machine utilization. The investment costs of an MES here only
amount to a few percent of annual machine costs. In other words, even an
improvement in machine utilization of just a few percent will deliver the
return-on-investment (ROI) desired.
Reducing the lead time

Reduction in lead times is without doubt the most important factor in eco-
nomic efficiency in production. Connected with the order lead time are
delivery time (competitive advantage), delivery reliability (customer satis-
faction), inventory (liquidity) and throughput (profits). Using an MES
system makes it possible to recognize these potentials and exploit them
systematically.
These simple examples show what process potentials can be hidden in
a company and how they can be uncovered with the pragmatically applied
software tool MES alone. Generally speaking, potential for improvement
in the company can be picked up more quickly due to the MES-based
process transparency and also exploited more quickly due to the MES-
based control cycles. Furthermore, since all process data are acquired sys-
tematically, it is possible to detect more potential for improvement than
without an MES.
1.6.4 Support for CIP and current certifications
Although there is still huge potential hidden in the improvement of process

quality and although the continuous improvement process (CIP) is anchored
in the current certification standards, such as DIN EN ISO 9001:2000 or
ISO/TS 16949:2002, in many companies process orientation is not actually
implemented in practice. A frequent reason for this is a lack of process
transparency, although this situation can easily be remedied by using an
MES. Due to the integration between the ERP system on the one hand and
the production level on the other, an MES is continuously acquiring data for
most process influences (orders, machines, tools, personnel, material, qual-
ity, etc.) in production. This means that hit lists (Pareto diagrams) relating to
the most frequent causes of problems and errors can be drawn up, process
times determined (setup times and processing times, waiting times and
downtimes, interruptions due to faults, etc.) and key data relating to process
and product quality calculated and displayed (for example, the OEE index,
machine utilization, degree of processing, scrap rate, etc.). In this way an
MES system supports improvement activities in all phases: define (defini-
tion of processes to be improved), measure (measure process data), analyze
(analysis of measured data) and control (check steps taken).
Fig. 1.15. Faster detection and exploitation of improvement potential with the aid
of an MES
1.6.5 Definition and tracking of objectives
Manufacturing scorecard: process-oriented key data

To be able to even survive in an ever fiercer competitive environment,
many companies depend on an entirely specific competitive strategy, such
as price leadership, technological leadership, service level, flexibility and
so on. With the aid of the manufacturing scorecard method and proceeding
1.7 Practical examples of potential benefits 37
from this strategy, process-oriented key data for production can be derived
on the basis of the measured variables supplied by the MES and can then
be communicated to employees as targets. The effect of this is that the
employees in production act in harmony with the interests of the company
and will also ponder on how their own key data could be improved. Even
CIP activities are supported by these key data since suggestions are pre-
dominantly made on the basis of key data and are then directly reflected in
the target figure. Thus knowing the current status and also the target fig-
ures is an immense motivation for the employees. At this point, in order to
demonstrate that MES can offer new possibilities even with familiar moti-
vation mechanisms, let us mention two examples which have long domi-
nated the manufacturing environment.
Group work
Since a process is in most cases affected by several people (for example,
the setting-up process by the machine operator, by the line engineer and by
the toolmaker) it is apparent that the same key data can be supplied to pre-
cisely those employees (the group) who can jointly influence the result of
the process. An MES supports this group work by providing all relevant
information in paperless form on so-called group i-point terminals.
Target agreements and bonus payments

The key data on the manufacturing scorecard are suitable not only for op-
erational target agreements but also for a bonus payments scheme , some-
thing which gives a further boost to employee motivation. Examples of
these key data are the degree of utilization = main usage time/occupancy
time; the degree of processing = main usage time/lead time; capacity
used = occupancy time/lead time; the labor utilization rate = main usage
time/attendance time; and the OEE index = availability u perform-
ance u quality.
1.7 Practical examples of potential benefits
When an MES system is applied rigorously within a manufacturing or-

ganization, the presence of control cycles with short cycle times and the
intensive interconnection of several classic disciplines such as control sta-
tion, PDA, quality assurance, machine data collection, and so on, delivers
a series of special potential benefits which can be listed here in a summa-
rized form.
Short-term scheduling takes capacity limitations into account and en-

sures a delivery date based on an up-to-date model of the capacity situa-
tion. This in turn makes possible a considerable improvement in on-time
delivery performance – in other words, customer satisfaction and em-
ployee motivation. With a simulation based on current production states
the best possible alternatives can be selected with the aid of scenario
creation. This can deliver the following advantages: better on-time de-
livery performance and improved capacity utilization while lead times
and inventory levels can be reduced. Similar effects are generated by an
up-to-date planning table which deploys ergonomically-presented order
information to increase the scope of action of the planner or operations
planner and scheduler.
The coupling of PDA, MDC and planning table means that very realis-
tic, real-time images – in some cases even using automatic counter data
acquisition – can be included in a planning table and the above-men-
tioned effects will also result.
Technology-oriented order and article statistics from PDA, MDC and
quality assurance can bring to light eventual technical circumstances
which result in higher costs due to unplanned consumption of material
and/or time in the manufacturing process itself.
Real-time order, machine and personnel overviews improve the quality
of information given to customers regarding delivery dates and can also
reduce undesirable in-process inventory levels.
A higher level of data consistency and less outlay on data collection is
achieved by means of an intensive coupling of CAQ and PDA. Above
all, immediate statements are possible about how many parts are cur-
rently in stock and in what quality and where direct action is required
regarding secondary finishing or quality problems.
When tool or resource management is coupled with machine data col-
lection the result may be a reduction in tool or machine failures. De-
tailed information relating to operating resources is available online and
maintenance can be scheduled for the appropriate times.
Downtime evaluations and weakness analyses from machine data col-
lection will result in higher utilization ratios and thus more capacity for
the same cost.
Interlinking staff work time logging or time management and produc-
tion data acquisition can make calculation of performance-related bo-
nuses a simple matter. In this way company objectives such as machine
utilization, on-time delivery performance and quality can be given direct
support. With these mechanisms it is also possible to log times by their
causes, thereby permitting overhead costs to be lowered throughout the
company.
1.7 Practical examples of potential benefits 39
Inventory overviews obtained by connecting together materials man-

agement and PDA may allow considerable reductions in inventory lev-
els of production materials in material buffers and interim storage facili-
ties and thereby reduce capital lockup as well.
Coupling together process data processing, CAQ and MDC means that
seamless product documentation can be maintained. This is standard in
regulated industries and more and more demanded by automotive sup-
pliers and food industry. It means that violations of tolerance and inter-
vention limits can be documented and fast reactions to negative trends
are also made possible. Displaying production-relevant documents on
a data collection terminal (the documents may come from all possible
operational divisions) permits a considerable reduction in outlay related
to the information accompanying production. With this mechanism,
a form of production which involves little paperwork becomes ever
more realistic.
With batch and lot tracking made up from CAQ, PDA and materials
management it is possible, as has already been stated, to maintain seam-
less product and production verification documents. This does however
also make it very easy to provide traceability information for input ma-
terials and scrap. By that it becomes possible to uncover improvement
potentials in production.
By condensing the immense amounts of detailed information held in an
MES it is possible to generate management information which reflects
the technical situation and which also enables conclusions to be drawn
regarding potentials for improvement, such as, for example, the OEE
index for individual operating resources, entire departments or even en-
tire plants.
2 MES for process capability
2.1 Economic efficiency as a process property
Today the economic efficiency of the company is scarcely a property of

the products any more but rather of the processes. Companies today are
thus faced with the task of optimizing their process chains, something
which in practice leads to a reorientation in resource steering which is de-
cisively important in competition: while in the past attempts were made to
exert control over the economic efficiency of production on the basis of
figures from the company’s accounting department, the approach today is
to try to identify the processes lying behind these figures. That, in brief, is
how Norton and Kaplan tackle the problem with their “balanced score-
card” (Kaplan and Norton 1997). The method which has been widespread
to date is to organize resources by the result via costs. This approach is
foundering on account of the increasing proportion of overhead costs since
it forces the cost accountant to take a considerable cost block which for
logical reasons cannot be allocated to the cost unit (products) in a manner
corresponding to the cause of the costs and notwithstanding this to still
allocate it to artificially created codes (cost center account) in a way un-
connected with the cause of the costs.
The main points of criticism may be summarized as follows:
Overheads are proportional to time – time consumption figures (lead
times) thus become an extremely important cause of costs. They are not
however picked up by traditional cost accounting – there is no time di-
mension – which in practice means that an instance of production with
a long lead time including subsequent storage is calculated in virtually
the same way as production with a short lead time.
This in turn results in the considerable effort being expended on improv-
ing the efficiency of value generation (degree of utilization) not being
expressed in the costs.
Opening up the areas of potential hidden in the processes is increasingly
becoming a matter of sheer survival: against a background of intensifying
competition virtually all companies are operating today with their backs to
the wall as regards not only their prices but also their equity capital. Process
42 2 MES for process capability
potentials are, on the other hand, comparatively enormous. Today this

means the first step should be to identify the process chains and then to
keep constantly improving them.
2.1.1 The process-oriented approach of ISO 9001/TS 16949
A process-oriented approach is the basis of process control. “For an or-

ganization to be able to function effectively it must detect, direct and steer
large numbers of interconnected activities. An activity which uses re-
sources and which is carried out in order to make possible the conversion
of inputs into results can be regarded as a process.” (ISO/TS 16949 2002).
The process-oriented approach of ISO/TS 16949 thus covers:
Understanding and meeting requirements
Process assessment from the point of view of value generation
Achieving results as regards process performance
Permanent process improvement on the basis of objective measurements
Competition in the global market is shifting increasingly from competi-
tion between products to competition between processes. Companies such
as Dell, Amazon or Würth may serve as examples of how markets can be
created not via products but via business processes.
The way value generation is oriented towards the customer has conse-
quences for the control of internal processes: the customer does not judge
isolated improvements in individual processing steps but rather solely the
result at the end of the value chain – in other words, the capability of the
entire process. This transition from the production economy to the service
economy is today referred to as the second industrial paradigm.
Process capability brings a new way of looking at things: to steer the
economic efficiency of the company not by means of its technical equip-
ment but rather via its internal processes. While improvements on the basis
of an improved manufacturing technology can only be achieved with diffi-
culty – most companies have the very latest machines and tools and may
well buy their materials from the same suppliers – the process potential is
comparatively enormous. Although process-based certification standards
have now become very common and although most companies have now
become certificated on the basis of a process-oriented code (ISO 9001,
TS 16949), the process-oriented approach is hardly observed in practice.
We shall therefore go on to show what action can be taken and tools de-
ployed to achieve the process capability of the company in practice.
2.1 Economic efficiency as a process property 43
2.1.2 The process potential in figures
Process capability means the ability to work without errors. Process capa-
bility can be measured as a spread within preset specification limits. The
process capability can be statistically expressed in numbers by sigma
which is a measure of the scatter. Purity grades can be assigned to the dif-
ferent sigma values. Today purity grades are expressed as ppm values
(parts per million non-conforming parts in a delivery).
Figure 2.1 contrasts the dependence between process variations – ex-
pressed as the scatter value sigma – and failures – expressed as the ppm value.
The really important thing to realize here is that when the process capability
is improved by just one sigma level, an improvement in economic efficiency
can be achieved by reducing failures by one order of magnitude, something
which is a long way from being achievable by making improvements in the
processing (machines, tools, methods, etc.) (Rehbehn and Zafer 2003).
Fig. 2.1. Assignment of sigma level and failures

2.2 The process capability of the organization
An organization may be considered process-capable when it is capable of

learning on a permanent basis. The learning potential of organizations (so-
cial, technical or economic) is in principle unlimited – but it must be sys-
tematically opened up. This presupposes that learning behavior is anchored
in the organization. As in aviation, where every flying accident makes
flying safer, in the factory every error must make the company better.
Figure 2.2 shows the potential an organization has for improvement by
the example of the experience curve as developed by the Boston Consult-
ing Group. This states that each time the cumulative production quantity is
doubled, the unit costs will fall by a fixed percentage (20–30%).
The relationship between the costs and the quantity manufactured is
based on the assumption that a company with rising production levels
learns how to manufacture the products more cheaply – a relationship
which for one thing is clear to every practitioner (Hendersen 1974). The
critical management task today is to have an improvement culture perma-
nently in place. This can be done in three steps.
Fig. 2.2. The experience curve

2.2 The process capability of the organization 45
2.2.1 Identification of systematic errors
Process control is not possible unless systematic errors are eliminated.

Here the first step is to register and analyze all influences on the process.
Figure 2.3 by way of example shows the errors which occurred for a ma-
chine, machine group, department or order and which can now be analyzed
by the employees. Simultaneously with order log-on at the machine termi-
nal, every MES (manufacturing execution system) registers with virtually
no manual input the corresponding process parameters such as: machine,
machine group, tool, article and operation, order, customer, shift, employ-
ees, and so on.
While random errors can be attributed to normal process variation and
are thus difficult to overcome, it is of decisive importance to the analysis
to identify the systematic component behind the process disruptions, since
the establishment of a causal relationship is the essential condition for
eliminating this error on a sustained basis. With regard to a particular
cause, errors cannot be corrected until error clusters have been found. Er-
ror clusters can typically be recognized by statements such as “every time
when …” (in the night shift, with this tool, with this customer, with this
machine, and so on).
Fig. 2.3. Systematic errors displayed in the MES

2.2.2 Systematic failure processing
Every unplanned fault in the process must be treated like an internal com-
plaint. All detected faults or errors must therefore be corrected perma-
nently, which means that the organization will improve with each fault that
has been detected and corrected. The long-term success of a company thus
depends on a culture of improvement which has to be permanently an-
chored within the organization.
While this systematic approach of permanent and rigorous failure proc-
essing has long been practiced in companies today in the field of quality
management, as regards the organization as a whole it is not yet state of
the art, not by a long way.
Systematic failure management calls for interplay between different de-
partments – it is a team activity: the foreman, the line engineer, the tool-
making, design or controlling departments make a contribution to process-
ing the failure report. As regards the systematics of this, the 8D report,
which was introduced by Ford, has now established itself as virtually the
standard and yet can still be adapted or varied to suit the requirements of
a particular company. What is important, however, is only that every de-
tected problem must be corrected in a guided manner. Any statistics which
Fig. 2.4. The 8D report for systematic failure processing

2.2 The process capability of the organization 47
do not automatically lead to failure processing are unnecessary and will

thus disappear.
2.2.3 Tracking corrective action
Any failure, once it has been logged, can immediately generate a workflow
in the MES system in which the processing steps (as, for example, in the
8D report) are specified and the departments processing the steps are de-
fined. All actions to be carried out during the course of processing are then
input into a mask for action tracking and can thus be monitored transpar-
ently. Not until all processing steps have been ticked off can the “case” be
closed. Here the 8D report also requires a long-term prediction be made on
the basis of the long-term corrective action taken (training, revision of
drawings, checking of documents, and so on).
The workflow shown in Fig. 2.5 can be defined for different kinds of
failure handling. In addition, an MES can also automatically generate
Fig. 2.5. Workflow for systematic failure processing in the MES

workflows for any kinds or instances of failure. To do so, intervention

limits are first of all defined for particular operation sequences (machines,
processes, work, faults, etc.) – for example, when a bottleneck machine is
idle for more than 10 minutes. Then, should such a limit be exceeded,
a workflow will be immediately generated automatically together with
a serial number for the problem, the date and the actions required.
2.3 Process capability in collaboration
Collaboration may be regarded as process-capable when everyone in the

company knows how he and the company can improve with respect to the
customer. This will not be possible unless the real value drivers are con-
verted into objectively measurable target values by which everyone in the
company can work under monitoring.
2.3.1 Wasted work
In the traditional cost environment employees do not have any objectively

measurable target values at their disposal. Cost predictions are abstract – in
other words, they are always the result of calculations, they are anonymous
– there is no individual breakdown into the individual function carriers and
the predictions always arrive too late – cost accounting is an approach
which chases the events.
Important questions which crop up daily, such as the following:
What is in fact the “correct” batch size?
Do you stop the machine or is it better just to work ahead?
Is it better to avoid setting-up work and increase the batch size or to set
up several times?
Consolidate orders – even when some are not due for a few months?
Can the old machines be scheduled in with a high hourly rate?
Should you quit on time or stay for another hour until setting-up the
machine is finished?
What is better, low unit costs or short lead times?
Objectives: management of measurable change

The sole cause of changes is mental processes. Regarding employee man-
agement it is therefore a matter of breaking down corporate targets to the
level of the individual employee in a measurable manner. Only then can it
2.3 Process capability in collaboration 49
be ensured that the efforts involved in their collaboration are actually di-
rected towards the process result.
Figure 2.6 shows by way of example how different corporate strategies
(in other words, the answer to the question: with which customers do we
want to stand out from the competition with which services?) can be for-
mulated in internal targets for the production department and then in objec-
tively measured quantities for the employees.
Fig. 2.6. Breakdown of strategic targets on the value generation level
Only this gradual breakdown of corporate strategy down as far as the

process level itself can ensure that the standards of the company with re-
spect to its customers are living realities within the company as well. Not
until there is a background of quantifiable target variables, such as reduc-
tion in process times, reduction in inventory levels, improvement in proc-
ess reliability, reduction in scrap or set-up times, will it be possible to pro-
vide the employees with handy measurable targets which they can then use
to improve themselves and the company. Such bottom-up decision-making
structures call for a new kind of personnel management: in future they will
be directed not by work instructions – as is the case in the traditional fac-
tory – but more and more by operational target agreements. In this way
decisions will be more often made by those closest to the work itself.
The manufacturing scorecard as an operative component of an MES also
offers the possibility of giving the employees (or the group) up-to-date
information about “their” score (Kletti and Brauckmann 2004).
2.3.2 Operational target agreements
The targets and measured variables found and formulated for the value
generation level are then grouped together into operational target agree-
ments. These then form the logical foundations of a corresponding per-
formance-related reward payment system.
Figure 2.7 shows by way of example how different target and measured
quantities can be assigned to the unit or person responsible for the process.
Group work is present anywhere several employees can jointly influence
the process result.
Fig. 2.7. Assignment of measured variables to the unit or person responsible for
the process
2.4 Process capability of information flows
Information and communication flows may be regarded as process-capable

when they are in alignment with the value stream. The further the informa-
tion flow separates itself from the material flow, the greater will be the
slack-time and the ensuing losses.
2.4 Process capability of information flows 51
2.4.1 The company as a paper factory
In the factory any piece of metal (machine, tool, mesh pallet, produced
items, and so on) which does not have its accompanying data record is
regarded as scrap in accordance with the certification rules. To give an
idea of the sheer quantity of vouchers and the like required just for the
flow of material: delivery note and works certification from the supplier
(incoming goods); release decision, supplier appraisal by QS (quarantined
store), stock receipt list (incoming goods store), job papers, material issue
slips, time tickets, container marking slip, routing cards, batches, lot track-
ing, scrap report (production), externally processed order, container track-
ing (outlying departments), stores ledger card, label (storage facility), pick-
ing request, stock picking list (assembly/order picking), delivery note,
invoice, shipping papers, QA documents (shipping), etc.
2.4.2 Interfaces without value generation
The reason for the paper factory is to be found in the fact that the informa-
tion flows in the company are traditionally organized on a hierarchical
basis – that is, in effect vertical to the flow of material. This can be seen in
the organization chart which describes not only relationships of relative
subordination or superiority but also instruction and reporting paths. Every
box in the organization chart can be an individual or a function. The transi-
tion from one box to another is an interface and therefore in all cases
a media discontinuity as well. Interfaces are cost-intensive, highly time-
consuming and a quality risk with high error probability.
Each interface produces paper. Companies pay enormous amounts of
money for their paper production. The printing costs alone of larger com-
panies are today already estimated at around 5% of sales volume. Even the
“normal” passage of an order through production calls for a high level of
written output, starting with preparation of the works order and printing
hard copies of the job papers such as time tickets, material issue slips, trial
orders, scrap reports, schedule cards or routing cards.
Each document has an expensive career: it is created somewhere (usu-
ally where it is not needed), sent somewhere (to a foreman, for example),
from here it is distributed (to the machine operator), filled out by him,
returned, either glanced at or checked over and signed by the foreman,
collected together and sent back to the office/EDP department, input at one
time or another (EDP or MS Excel), and finally, once everyone has forgot-
ten all about its contents, evaluated. Copies are made of the evaluation,
these copies are sent out for distribution and finally everything is filed
away. This is a long chain of activities which ties up time and personnel.
Fig. 2.8. The organization chart as a traditional communication model
In addition, each document calls for different knowledge and thus

means different responsibilities. Responsibilities in turn require complex
coordination activities between the units involved: informing, checking
back, assigning, passing on, etc. Communication between different de-
partments always means that the corresponding paperwork has to be pro-
vided as well. Not only that but in nearly every company the most varied
regular reports are issued, reports which are expensive to prepare, whose
original purpose has become lost in the mists of time and which are there-
fore never read but immediately filed away untouched.
Another and a less often considered point of weakness in decentralized
information structures is found in the transformation of the existing knowl-
edge which is basically present in the company but not currently available:
it is found in drawers, folders, files or in the heads of the employees.
2.4.3 The way to paperless production
The alternative to media discontinuities is a dialog-based decentralized

access to central data storage: the right information at the right time in the
right place. With this, all data hoards such as lists, statistics, files, various
written records and so on can be broken up at a stroke and the really neces-
sary information made available to all users in real time and without the
use of paper.
2.4 Process capability of information flows 53
Grouping together and networking all of the relevant business processes

within a data storage facility automatically eliminates the interfacing costs
found in the classic organization which arise from the isolated concurrent and
consecutive arrangements of business processes which are bound together in
their results. An essential requirement of this new approach is that all of the
processes necessary to value generation are networked in a data model. Mod-
ern production data management automatically captures the value-adding
processes in the background and makes the data available – in a manner of
speaking as a waste product – decentrally to all information end-users from
a central production database. This shared use of central data which are only
held in a single location represents a revolution when compared with the
usual organizational forms which we have just briefly sketched.
Automatic online data acquisition is therefore a requirement of decisive
importance to the integration of business processes which within the or-
ganization based on division of labor cannot be implemented economically
or efficiently by means of written records. For example, recording job
processing on a centralized basis means that information can be obtained
automatically and simultaneously: order progress data for production con-
trol; machine problems for time scheduling, beginning of setting-up for the
next processing step, supply dates for the supplier, delivery lead time for
the customers, processing times for the controlling department.
The information hidden behind every business process is available in
real time via a central data storage facility with decentralized access: the
Fig. 2.9. Process-capable communication model

right information at the right time in the right place. In the new factory,
machine states, order progress, time scheduling, batch tracking, preventive
maintenance, tool management and statistical cost accounting are viewed
and presented as networked events. Instead of personnel organizations
based on the division of labor together with their traditional departments
and hierarchies, processes are made available in real time by networking all
information consumers. The right information at the right time in the right
place. This means that even traditional management structures such as hier-
archies and departments can be replaced by information structures which
all employees are networked and have access to the same information.
The concept of information networking has some other effects of deci-
sive importance:
The supervisor as a source of information for the employee now be-
comes less important.
The company’s knowledge base which is normally somewhere or other
in an unmonitored form (files, drawers, individuals) suddenly becomes
available.
2.5 The process capability of flow control
Flow control can be regarded as process-capable when it is based on

closed-loop control. In contrast to open-loop control, closed-loop control
requires some feedback input of system behavior.
2.5.1 Deterministic control
Traditional production control does not regulate – it is deterministic. Pa-

rameters located further up in the hierarchy, such as customer data (quanti-
ties, specifications, and so on) and production planning data (shifts, ma-
chines, TE and TR, and so on), are passed downward – in most cases still
by progress chasers running the shop floor up and down – and processed in
a disconnected manner. The corresponding approach is Tayloristic: the en-
tire body of knowledge is basically available higher up and only needs to
be implemented further down.
Modern companies are, however, complex, permanently disturbed cha-
otic systems also characterized by having a high share of non-schedulable
times. Unlike simple (linear) systems they cannot be controlled (by open-
loop control). Notwithstanding this, linear (deterministic) production con-
trol is still the dominant system approach today, a circumstance which in
practice results in considerable problems with unscheduled queuing and
2.5 The process capability of flow control 55
waiting times, unplanned inventory, deadline infringements and the result-

ing extra costs in production (a hectic atmosphere, overtime, special shifts,
express transportation, and so on).
2.5.2 Control with feedback (closed-loop control)
Only by feeding back actual system behavior it is possible to have closed-

loop control. Incorporating a feedback loop in the system is thus the deci-
sive precondition for the process capability of the material flow. This in
turn means that the elements of the control loop (set-point values, control
variables and measuring elements) must be embedded in the organization.
An efficient flow control system must be able to react to faults flexibly
and with minimal time lag. To ensure that there is a fast and competent
reaction to faults and malfunctions the control loops need to be organized
appropriately.
This arrangement results in an organization model in which the plan-
ning level (production control) on the one hand and the material planning
level (actuator) on the other are linked together via a measuring element
(MES/decentralized online planning table). Unlike the traditional, deter-
ministic Tayloristic flow model with central production control and pro-
Fig. 2.10. Production control as a control loop

gress chasers, a modern order processing center is characterized by

a process-oriented distribution of tasks.
Central planning
The order processing center is the central process owner. In a similar way
to the head of department who bears a responsibility for the department,
the process owner has the responsibility for the process results. In contrast
to the traditional vertical style of department classification, here the proc-
ess owner is biased horizontally by the process orientation – he thus forms
a part of the process chain (supply chain).
The order processing center as process owner thus has a responsibility
which ranges all the way from the external supplier via outlying units and
as far as the customer. It is furnished with the corresponding powers: it can
agree on dates with the supplier without involving the purchasing depart-
ment and is also the responsible contact for the customer with regard to
delivery dates without having to involve the Sales department.
On the basis of the information about bills of material, operation sheets,
order quantities and shelf inventories, the ERP system, as part of flow
scheduling, determines the basic dates (earliest and latest starting dates and
also the earliest and latest finishing dates) for each operation and these are
then passed on to the material planning level as requirements.
Decentralized material planning

The material planning level on the spot (line engineer, foreman, group)
plays a central role in the order processing center concept: this is where we
find the production-related application knowledge about machines, tools,
individuals, and so on – in other words the knowledge which in traditional
production control has first to be laboriously gathered by inquiry and
which, if simulation systems are used, needs to be completely coded.
Decentralized material planning (detailed scheduling control) thus has
every freedom, while making use of existing knowledge about the ma-
chines (machine capability), tools (status, availability), to optimize proc-
essing (set-up optimization) within the specified time window.
MES and the online planning table as an integrated system

A precondition of the decision-making capability of the employees on the
spot is the information they have regarding requirements, targets and re-
sources associated with their decisions. Decisions must be based on
knowledge. This information cannot be communicated without a powerful
MES and an integrated online planning table. It supplies the information
2.5 The process capability of flow control 57
for decisions about finite scheduling, control of process flow, material

transportation, trouble-shooting, quality control, maintenance, and so on.
In traditional production control the planning level – today usually lo-
cated within the PPS/ERP systems be gained – and the execution level
function alongside each other without being monitored. In this the progress
chasers, time keepers or foremen form a parallel organization which re-
veals itself in schedule meetings and various adjustments which take place
outside the data model and then have to be input back into the system af-
terwards. This is an approach which in practice is called peer-to-peer com-
munication.
The modern MES now makes it possible to integrate planning and exe-
cution in a single system without interfaces. The information in question is
passed on online:
Work instructions go out via the network to the terminal close to the
machine. In this way all further associated information, whether from
the ERP database, the QS database, the DNC server, and so on, is auto-
matically made available electronically (and can still be printed out on
the spot if necessary).
Status reports are also provided online regarding the work cen-
ters/machines, this taking place in step with the work cycle. This means
there is no need for written records with their usual risks such as uncer-
tainty, arbitrariness, time lag, incompleteness.
Figure 2.11 shows by way of example a graphic production control sta-
tion as an integral component of an MES. It offers the possibility of, on the
one hand, taking over planning inputs online from the ERP system from
“above” (such as articles, operations, set-up and processing times, use of
material, production quantity and customer deadlines) and on the other
hand comparing them online with the current actual situation from “be-
low” (such as machine states, dynamically calculated lead-time remain-
ders, order progress, loading horizon, capacity conflicts) – in other words,
from the operative level. With this closed control loop the planner has for
the first time the ability to react without slack-time – in other words, to
regulate.
Special importance should be attached to the real-time updating of the
database (master data in the ERP system): as has already been stated, the
reliability of the database is the decisive requirement for the efficiency of
material flow. Manual care and maintenance of the input requirements
(operation sheets, processing times, set-up times, machines, and material
requirements) is in practice not possible, especially against a fast changes
actual situation.
Fig. 2.11. Online control station as a tool for material planning
2.6 Summary
The nature of competition is shifting increasingly from competition be-

tween products to competition between business processes. This makes the
demand for process capability the very highest priority for the new factory.
Process capability means the company and its resource deployments are
oriented rigorously to the process results and thus to the customer.
Traditional production attempted to guide resource consumption in proc-
essing by means of the counting mechanism of the company accounting de-
partment with unit costs used as the target quantity. Unit costs in the sense of
costs assigned to the corresponding originator of the cost hardly exist any
more today. The modern service economy is characterized by a high and still
increasing proportion of overheads. Overheads cannot however be assigned
to individual cost units by any logical procedure. The result of this is that in
the past there was no possibility of evaluating added value on the market (and
thus for the customer) with the costs incurred allocated source-specifically.
The ensuing lack of an effective control loop between the market and the
company (price-based control) in practice results in enormous waste. This
manifests itself in, for example, the fact that in virtually all companies the
2.6 Summary 59
possibilities of saving on costs have been exhausted although these instances

of waste do at the same time represent a considerable process potential.
The process-oriented approach laid down in the certification rules with
its demands for customer orientation, process control and a culture of per-
manent improvement makes a systematic identification of processes neces-
sary. It is, in fact, part of the central weakness of traditional cost account-
ing that it cannot carry out this identification on a methodical basis: it lacks
a time dimension.
Process identification means concurrent in-process data acquisition for
all value-adding processes in the company and this task can only be solved
economically by having a concurrent MES system running in the back-
ground. For this reason, coherent process identification is not feasible
without modern information technology in the form of an MES system.
Although in the meantime an overwhelming proportion of all companies
has been certificated in accordance with the process-oriented standards ISO
9001 or TS 16949, this approach is not actually being put into practice. The
resulting process capability is not state of the art as it is understood today.
Table 2.1 When is a company process-capable?

Process capability of the An organization is process-capable when it is consis-
organization tently self-teaching down to and including the opera-
tive level. As in aviation, where every flying acci-
dent makes flying safer, every error must make the
company better.
Process capability in When every employee on the operative level, thanks
collaboration to access to quantifiable requirements and targets,
knows how good he is and how he can improve
himself and the company.
Process capability Resource steering is process-capable when it is ori-
of resource deployments ented by process parameters (lead times, target dates,
inventory levels, etc.) instead of by false key data
such as unit costs, batch sizes and hourly rates.
Process capability of IT structures are process-capable when they repro-
IT processes duce the value stream without the use of interfaces –
in other words, without media discontinuities in the
form of papers, written records, vouchers, planning
extracts and so on.
Process capability of Reporting is process-capable when statistics have
controlling/reporting been replaced globally by reviewing.
Process capability of Flow control is process-capable when traditional
flow control centralized open-loop control is replaced by decen-
tralized closed-loop control.
Literature
ISO/TS 16949 Technical Specifications, 2nd edn., 2002
Hendersen B (1974) Die Erfahrungskurve in der Unternehmensstrategie [The
experience curve in corporate strategy]. Herder & Herder, Frankfurt/Main
Kaplan R, Norton D (1997) Balanced Scorecard. Schäffer-Poeschel, Stuttgart
Kletti J, Brauckmann O (2004) Manufacturing Scorecard. Gabler, Wiesbaden
Rehbehn R, Zafer B (2003) Mit Six Sigma zu Business Excellence [With Six
Sigma to business excellence]. Siemens AG, Berlin and Munich
3 Added value from software
3.1 The company as information system

3.1.1 Information as a production factor
Modern companies are predominantly information-processing systems. It

can be assumed today that more than half of value-added costs flow into
the production factor of information. Production itself is losing strategic
importance more and more rapidly. This manifests itself in, for example,
the fact that companies are relocating their production abroad for reasons
of cost or are reducing vertical integration without losing their competi-
tiveness or even actually improving it. This is also confirmed by a survey
conducted by the VDMA which revealed that a vertical integration of al-
most 50% in 1998 had shrunk to nearly 40% in 2004, coupled with a si-
multaneous improvement in position in international competition.
Production is being increasingly replaced by the service capability of of-
fering the market a wide range of product variants to suit customers’
wishes while at the same time ensuring a high quality of products and ser-
vices as well as an excellent delivery service. The features listed here, such
as conformity with customer wishes, services, quality, range of product
variants, delivery service, are none of them properties which can be se-
cured via the traditional concept of production and thus to be pinned to the
product in a measurable manner. They are primarily based on information
processing and the ability to have the required information available at the
“right time”, in the “right quantity” and at the “right place”. Command of
information management along the value chain is becoming more and
more important for the competitiveness of companies whether they now
manufacture physical products, such as the capital goods industry, or vir-
tual products, such as for example the software industry.
The more the value creation of a company for the customers consists of
combinations of products and services (with services taking an ever greater
share), the more productivity a company will have to invest in its informa-
tion processing and thus in the deployment of supportive software. This
does not mean however that investment in software will automatically add
benefits in productivity, flexibility or transparency. A large number of
62 3 Added value from software
examples spring to mind in which a half-hearted and unsystematic use of

software tended to bring disadvantages with it instead. Software alone does
not bring added value – not until software is installed in the right environ-
ment and used systematically will added values be achievable.
3.1.2 Re-engineering and integration
When you examine the value-adding processes in a company, what they all
have in common is that they are accompanied by information which on the
one hand documents the status of value generation and on the other hand
describes the performances which still have to be carried out. Information
is thus the real process driver and in this way controls operational se-
quences in the company. One obstacle to fluid processes is, however,
forms of organization which are oriented by performance which hinder and
slow down the processes on the basis of departmental boundaries. A fur-
ther obstacle to fluid processes are the innumerable media discontinuities
which cut up the information into large numbers of individual parts. This
makes it very difficult to track, control or direct these processes.
There is no doubt that overcoming a conventional, Tayloristically biased
organization structure is a management task which goes hand in hand with
considerable changes in the culture of the company. If information proc-
essing makes up the greater part of value generation, rationalization will
have to be applied to the information processes. That is the idea behind re-
engineering. Re-engineering aims at a restructuring of the information
processes with the objective of obtaining control over increasingly greater
demands with regard to quality, service, flexibility, costs, target dates and
delivery times. The decisive changes will take place in the future not in the
field of technology but rather in the definition of and control over informa-
tion processes. The prevention of media discontinuities is, on the other
hand, a task which can be carried out with the aid of technical tools. Here
the control and processing logic is mapped into the software. When inter-
nal and external data networks are used, the information can be passed on
in real time over departmental and corporate boundaries. It is of decisive
importance here that the systems involved actually understand each other.
The situation should not be permitted to arise whereby the information is
being exchanged digitally but nevertheless, due to a lack of or incompati-
bility in data interfaces, a human agent must actively step in as a mediator
of information.
These two aspects – modernization of the company organization by re-
engineering and optimization and software support for information flows –
must go hand in hand if a sustainable improvement in the value processes
is to be achieved. It cannot be pointed out too often in this regard that
3.1 The company as information system 63
management is required here to involve itself actively in the successful

realization of the corresponding systems. Many projects come unstuck
because management only feels itself responsible for allocating means and
resources and the persons in charge of the project fail not in the technical
implementation but rather in the necessary organizational and personnel-
related design work.
3.1.3 Information processing in production
If a comparison is made of progress in information processing in the vari-

ous functional areas of a company, it will become clear that production in
particular is still frequently suffering from deficiencies in information
processing and networking. Production steps are characterized by an in-
creasing complexity which is caused or at least influenced by high product
variance and customer-specific implementations of the products. This
impacts especially on the capital goods industry whose particular chal-
lenge is the economically efficient production of a batch size of one. Mas-
tering complexity while simultaneously securing productivity represents
precisely the ideal typical conditions for the use of modern information
processing.
It is astonishing in the light of this that a paper-based exchange of in-
formation is still prevalent in the production departments of a large number
of companies. Paper-based collection of data for machine run times, ma-
chine availabilities and OK parts from actual production in progress is
a living anachronism which is still a routine sight in industry. These activi-
ties are amongst the most cost-intensive, non-value-adding activities in the
production environment which industrial companies still indulge in today.
This way of working is, however, not only extremely inefficient but it ac-
tually encourages errors and inaccuracies. Furthermore, it should be noted
that the employees are also measured and judged by the data and informa-
tion arising in the production process. Payments systems based on the
evaluation of the quantities of items produced will automatically bring
with them the danger of people trying to manipulate them.
It is not only operations planning which is brought into confusion by the
errors which can occur in manual data collection. Even today machine-
hour rates are used as the basis for calculating selling prices. If, in spite of
all its known deficiencies, this method which takes the machine-hour rate
as the basis of costing is still used, at least every effort should be made to
prevent the corresponding information from being falsified by human error
or weakness.
3.1.4 Machines as information-processing systems
The theme of information processing primarily brings to mind software

running on classic IT hardware such as mainframes, servers or PCs. How-
ever, in parallel with this world of company IT, a world also exists of
automation technology and machine-oriented software. Machines and in-
stallations or the automation technology used in them are themselves in
most cases complex information-processing systems. Technical functions
in machines and installations which were once implemented by means of
mechanical and specialized electrotechnical components are today more
and more often based on software and standard IT. In this way software,
via digital sensors and actuators, regulates and controls the movements and
operations of the machine while industrial-grade PCs serve the machine
operator as a communications interface with his machine, with higher-
level software systems or, via the internet, with the outside world. With
modern information-controlled components or machines, the part of unit
costs made up by the software can easily be as much as 25% to 40% or
sometimes even more. Nor is it a rarity for software development spending
to amount to 30% or more of total development costs – something which is
also reflected in the constantly increasing number of software developers
employed in companies.
The primary reason for the growing proportion of software not only in
capital goods but also in consumer products such as cars, entertainment
electronics, telecommunications is to be found in the fact that software
allows the products to be tailored much more simply and flexibly to the
specific requirements of the customer and is also able to offer additional
new services and features. Even with traditional products, the use of soft-
ware is therefore more and more becoming a competitive factor, the basis
for customer-oriented added value.
From the view point of the MES a considerable problem existed in the
past in that information processing in automation had developed independ-
ently and interfacing with machines was both complex and product-
specific. The special requirements applicable in the automation environ-
ment, such as real-time processing, safety, availability and even costs,
have resulted in special, mutually incompatible controllers, bus systems,
operator terminals, data storage facilities and programming languages. As
standard IT and software is used more and more often, even in automation,
interfacing problems between the two worlds of the company are declining
and this is making it possible to implement standardized and considerably
more efficient information and communication processes.
3.2 MES in the capital goods industry 65
3.2 MES in the capital goods industry
Using software to increase performance in information processing is in

itself nothing new for the company and has been an ongoing topic for
years. What is new, however, is that the question of software application
arises again and again in response to new technical aspects and new possi-
bilities of using it. Due to the high speed of innovation in the IT industry
the basic technologies are in a constant state of change and new areas of
application are constantly being opened up. (Marketing statements such as
“This software will secure your future” or “Solve your problems with this
software” are intended to win potential customers for new software in-
vestments.) However, after years of euphoria we can now see wait-and-see
attitudes, particularly in mid-sized companies. It is precisely with new
technologies (such as MES, for example) that a certain skepticism is en-
tirely advisable – as also an analysis of the environment – before any ac-
tual investment in software is made – but then it should be implemented
systematically and with a clear direction defined.
3.2.1 Characteristics of the capital goods industry
The capital goods industry, which in our view includes in particular me-
chanical engineering, plant engineering and construction and electrical
engineering, is currently once again one of the cutting-edge branches of
industry. Following the lamentable failure of the “new economy”, people
are once again remembering traditional areas of strength. Strong growth in
sales, high export shares and technological leadership are some very pre-
sentable characteristics of this sector of industry. Despite what tend to be
unfavorable influences in the environment, such as unfavorable exchange
rates or higher costs for energy and raw materials, the industry’s compe-
tence in problem-solving is winning through in the international arena and
demand for the products is at record levels worldwide.
Notwithstanding this, this branch of industry is not resting on its laurels
at all. As the VDMA’s 2004 survey of trends indicates, as a way of im-
proving the competitive situation, action in the fields of “forced product
innovation” and “employee qualification” is currently very popular. To
gain competitiveness in a location with high wage levels, it is necessary on
the one hand to defend product leadership and on the other to use human
resources more and more efficiently. A decisive lever in accessing these
benefits is IT solutions. This is all the more important in the light of the
fact that a shortfall in qualified personnel for future years can already be
noted for this sector of industry. It is therefore a matter of automating rou-
tine tasks more extensively and giving complex operations support from
Fig. 3.1. Innovation survey
suitable software instruments. That companies in our industry really do

want to take this road can again be seen from the above-mentioned trends.
Here it becomes evident that as a strategy for improving the competitive
situation the option of relocating production abroad is regarded as well
below average and takes last place amongst all the possibilities!
3.2.2 MES in the IT software landscape
In companies in the capital goods industry, MES is as a rule surrounded by

a large number of supplementary software solutions. How these modules
are classified will depend on the one hand on their functionality within the
context of value processes. Externally these are the company’s suppliers
and customers, internally the functional areas with their specific tasks
within the process. The processes can be roughly subdivided into commer-
cial and technical tasks. As regards the integration of the MES system into
this software environment, different requirements will apply. All in all it
can be said that the closer you get to the production process, the greater is
the necessity to integrate the software products with the MES. Here clear
requirements relating to interfaces arise particularly for the classic ERP
components of inventory control (DIS) and production (PPS). In addition,
the tight connection with the level of automation is to be emphasized. Here
the old method whereby the ERP has a unidirectional supply of machine
data from MDC (machine data collection) or from PDA (production data
Fig. 3.2. Integration of the software landscape into the company
acquisition) has now become a dialog between the MES on one side and
these systems on the other.
The main aim of the close connection to inventory control is to provide
support for the detailed scheduling control of the production materials and
components which are available for the production orders. This brings one
of the most indispensable requirements for production into the planning
process, namely material availability.
In the past PPS was often incorrectly rendered in German as “Produk-
tionsplanung und Steuerung” (in other words, production planning and con-
trol). In fact, not giving the production scheduler a possibility of control is
the precise inability which is characteristic of PPS systems. The classic ap-
proach here is to plan against unlimited capacities and possibly even to use
starting dates which are already in the past. The MES can deploy its strong
points here of backlog-free planning on the basis of existing capacities and
the current progress of production being reported back in real time. On this
basis PPS can then release customer orders on hand to production, doing so
on a rolling basis; the systems run in synchrony and supplement each other.
3.2.3 MES in the technology life cycle
Despite the very respectable benefits of MES this concept is still far from
winning through in the investment goods industry. In some cases there is
still a great deal of skepticism as to whether MES is just “old wine in new
bottles” or whether it might be better just to wait and see, until MES has
established itself over a broad front.
This skeptical or dilatory attitude is primarily rooted in some negative
experiences in the past. As early as 20 years ago the concept of integration
and increased use of computers was taken up under the keyword CIM and
presented as having a very sound theoretical basis. However, the limited
performance of the hardware infrastructure of the time as well as the lack
of possibilities for a powerful implementation of the concept using soft-
ware tools meant that only slow progress was possible. Thanks to produc-
tion data acquisition (PDA) and machine data collection (MDC) on data
collection terminals specially developed for this, the existing graphic pro-
duction control station using planning tables in the scheduling department
or foreman’s office has been replaced by electronic displays of the same
information. In the “advanced planning and scheduling” (APS) approach
during the mid-1990s an attempt was made to close the gap which PPS
systems had left with the planning philosophies of MRP and MRP II. This
should now have put an end to the situation whereby periods in the past
were accorded planning relevance with regard to production steps not as
yet carried out. Nevertheless even the APS method could not get beyond
being simply a more refined planning attempt to close the control loop
between ACTUAL and TARGET.
With MES the integration of all information relevant to production – in
other words, to the areas of personnel, material resources and production
resources – has now been completed. Data about available personnel re-
sources with qualification profiles, available raw materials and compo-
nents, and also the free machine capacities including the tools and equip-
ment required, all flow into the MES. At the same time, manufacturing
progress is reported back continuously to the planning system thereby
closing the control loop of production control in such a way as to make
iterative replanning in production possible on this basis.
In retrospect, MES, like its predecessors, has run through a development
curve typical of new technologies which corresponds to Gartner’s hype
cycle. If the idea of the CIM is taken as the starting point, with MES we
have now reached the “slope of enlightenment”. A growing number of
systems are available on the market which are technically mature enough
for practical service and whose utility value has been demonstrated by
concrete implementations.
It does therefore appear very likely that in the foreseeable future MES
will play a considerable role within the context of production organization
and control and will also reach the plateau of the application level and
widespread industrial application. Ultimately potential users will have to
decide whether MES will prevail or succumb to its own hype.
Fig. 3.3. Gartner’s hype cycle
3.2.4 MES as seen by the user
A frequent indication that a technology hype bubble is bursting is when its

technical terms are ridiculed or trivialized. In Germany, CIM, for example,
gets called “Simsalabim” (“open sesame”) and BtoB “to be or not to be”.
With new IT terminology there is always the danger of them being picked
up by a large number of vendors in an attempt to exploit the market poten-
tial and who then redefine the terms for their own purposes. The result of
this is a considerable lack of transparency for potential users. It is for this
reason important that organizations such as MESA, NAMUR or VDI en-
deavor to bring clarity to the definition of the term MES and to define the
functional framework of MES.
In Germany MES is still a comparatively recent term. In a survey of 670
companies in the manufacturing industry conducted by Trovarit in 2004
the term MES was unknown to more than 50% of the companies while
only 7% indicated they were familiar with the topic. Comparable situations
may also be observed in other fields of software technology as well, such
as PLM or the digital factory. In mid-sized companies in particular there is
in most cases great uncertainty as regards areas of application, practical
implementation or even the economic benefits of MES.
The VDMA, as representative of a broad range of small- and medium-
sized businesses, has therefore committed itself, particularly in the case of
new technologies, to clarifying matters for users, doing so by presenting
examples of applications, reference lists, guidelines and by carrying out

special surveys.
In these surveys of production which are conducted at regular intervals
and which also cover the technological and organizational resources used,
the term MES has not yet actually been used. If the results over the course
of time are considered, it is noticeable that the use of technological or or-
ganizational resources in manufacturing has tended to stagnate or even
recede during recent years. On the other hand the high proportion of pro-
duction information systems or PDA systems in use – more than 60% –
indicates the great potential available for MES.
3.2.5 MES as seen by the market
In the light of the background we have described, it is certainly not surpris-

ing that over the next few years the MES market is expected to become
one of the fastest growing software areas in the industrial environment.
The corporate consultants of ARC forecast, for example, an annual growth
of 11% for MES in the process industry.
What is difficult with prognoses of this kind is that there is no clear struc-
ture to either the requirements made of the systems nor the vendor environ-
ment. The MES supplier market is still characterized by a high degree of
heterogeneity and is addressed by several groups of suppliers, something
which is explained by MES’s positioning as a link connecting ERP and
automation.
Fig. 3.4. Market growth for the process industry (source: ARC)
3.3 Preparations for MES-implementation 71
Due to the increasing demand for MES many suppliers of automation

systems have expanded their range of products and services in this direc-
tion. There is no doubt that the marked commitment of the automation
suppliers will result in further expansion and improvement of interfacing
and communications between automation systems and MES systems. The
interest that ERP suppliers have in MES is to further close the information
gap which has so far existed in manufacturing, doing so either by develop-
ing their own solutions or by cooperating with standard MES vendors.
A functioning connection with the higher-level ERP system is an impor-
tant and critical factor in an MES system and defining practicable and
standardized integration interfaces for ERP is an important task in the fur-
ther development of MES. The engagement of the ERP suppliers who have
already widely established themselves in the industry could be a decisive
influence on the development of the MES market.
The third group are the actual MES specialists who can already offer
mature, self-contained solutions for the MES market. Where differences
exist they are mostly found in the scope of MES functions covered and in
the primary orientation towards specific sectors of industry or types of
company. Due to their years of experience and their customer-oriented
flexibility these suppliers will continue to play a decisive role. Companies
who are looking into MES and planning to introduce an MES system
should abandon the idea that they can buy an MES system “off the shelf”.
MES must be tailored to their own particular situation and may very well
be spread over a number of different software systems. Companies should
take an eagle’s view on their own manufacturing layout and create a struc-
tured master plan for their own MES system selection.
3.3 Preparations for MES-implementation
Continuous changes cannot be possible without continuous thinking proc-

esses. Systematically breaking down the performance promise of the com-
pany as expressed in its targets into key data and measured variables and
going right down to the operational level will trigger a long-term dynamic
process which cannot be laid down in advance nor even cast in an action
catalog. For this reason it makes sense to work out the structures, objec-
tives and room for maneuvering, doing so in collaboration with the em-
ployees. Only with this collaborative procedure will it be possible for the
company to identify itself via the process responsibility of every single one
of its employees.
3.3.1 Identification of objectives
A systematic application of MES will result in major consequences within

the company. Benefits of MES nevertheless are not always understood in
advance by those affected:
The organization becomes self-learning, something an MES makes pos-
sible by its automated workflows and automatic escalation functions.
The personnel field becomes decentralized and many decisions are made
on the spot by a bottom-up process and then communicated upwardly.
Leadership on the shop floor is carried out via KPI-based performance
data by which the employees orient themselves at all times.
Employee remuneration models are now based on processes and no
longer on static figures.
Central data storage coupled with decentralized data availability is revo-
lutionizing the classic factory IT infrastructure by eliminating media
discontinuities – value generation becomes interface-free.
The concept of hierarchy is changed by process-capable information
structures: the hierarchy becomes a service provider.
Due to the introduction of MES, flow control, traditionally occupying
a central location, turns into decentralized material planning with close-
to-process control loops.
Within the context of an MES deployment project it is therefore impor-
tant to draft the most realistic model possible for a future manufacturing
organization. To do so, the existing situation will need to be carefully ana-
lyzed, the potentials for improvement identified, and on this basis the
measures required for implementation obtained. The best course cannot be
laid without clarity about its destination:
What strategic direction should be implemented?
What objectives support this corporate strategy?
What key data and measured variables can be developed for these objec-
tives?
3.3.2 Systematic process development
The permanent orientation of resource deployments by the process result

calls for systematic process development involving all process owners.
While decisions relating to economic efficiency were made in the past
solely on the basis of figures from the accounting department, tomorrow’s
factory will, with the aid of an MES system, relate its key performance
figures to the operational sequences behind these figures – the processes.
This far-reaching change affects the entire organization and it must there-
fore be borne by all employees.
Unlike the traditional procedure used with changes, which were imple-
mented by the top-down method, here the process owners who are directly
affected should be addressed. Again and again, on-the-spot workshops
have demonstrated that the workers as a rule are the ones who point out
recurring deficiencies in the organization. In the past they never had a sys-
tem to express what these negative situations mean in terms of time and
money, they never could quantify them or even eliminate them. Here the
lost potential for bottom-up improvement is comparatively enormous: fail-
ure to meet scheduled production order lead times and delivery dates,
“firefighting” responses, and immense sales and administration costs are
examples of typical types of waste.
Accordingly, this project phase begins by including all those individuals
involved in the process. Any inequality in knowledge regarding the MES
project will create aggression, mistrust and arrogance and uncontrollable
ancillary hierarchies will arise. Process responsibility must therefore be
jointly borne by the following departments in particular: controlling, data
processing, sales, production planning, purchasing, engineering, produc-
tion, quality management and IT. In addition, the works council (union
representatives) should already be included in this early project stage in
order to counteract possible obstruction right from the start. In this connec-
tion it must be made clear that MES is not about surveillance of the work-
force but is rather a way of optimizing production processes. It is also
beneficial if it can be demonstrated that the workers are also direct partici-
pants in the successful implementation of the project by the fact that, say,
observance of deadlines and successfully achieved quality will be posi-
tively reflected in their wage packets.
Process descriptions, such as will already have been prepared during the
course of certification, are a useful resource here. In this phase the re-
quirements of the departments or fields of responsibility involved in the
process are drawn up in detail in conjunction with the employees.
3.3.3 Estimation of a return on investment
If the extent of weaknesses is documented in the form of examples and

also quantified for the company, a subsequent potential analysis will help
in preparing an approximate cost-benefit analysis and from this at least
a rough idea of the return on investment can be calculated. This report
should include not only details of the various potentials but also explana-
tions of alternative solutions and handling approaches. It should also pre-
sent the improvement potential by MES. An examination of the costs and
benefits (which in this phase will still be very approximate), a first feasibil-
ity study and a rough project plan should all be constituent parts of the
information provided to the persons with decision-making responsibility.
The aim of this first project step is to obtain a project order including
a budget and executive support from top management, ideally
a “godparent” is appointed as responsible for the project.
3.3.4 System tuning
The final system tuning is based on the key data obtained from systematic
process development. Requirements might, for example, include:
Integration of the operational level (controls)
Forms of employee remuneration
Process time optimizations
Implementation of quality assurance
Interface requirements
Special aspects of production technology
Globalization (browser capability)
and so on
The predefined project objectives can now be compared with MES solu-
tions available on the market. For this purpose the VDMA offers its mem-
bers, for example, specific reference lists. Considering the complexity of
what MES solutions are available, it may be worth recommending getting
support from a consultancy which has demonstrably proved itself to be
a successful partner in the selection of this kind of corporate software. The
corresponding references should be helpful here in the evaluative process.
Possible suppliers will now need to be appraised on the basis of what is
required.
In addition to the usual cost-benefit aspects, their offers should also be
judged on the basis of “soft” factors such as:
Financial standing. The vendor company should also supply not only
documented evidence of its economic strength but also a convincing
business strategy.
The technical future potential of the solution and development strategy
over the years ahead must be recognizable and transparent.
Organizational capabilities and permanent availability are features which
should not be neglected and which reveal themselves in after-sales
services, software care and maintenance (update and release policies) or
project know-how.
Finally, care should also be taken that the company size of both user and
supplier are comparable. It can be assumed with the mid-sized software
company that it understands the daily problems experienced by the mid-
sized manufacturing company. The two or three system suppliers which
best meet requirements are now asked to submit their product specifica-
tions and also a detailed implementation plan. In addition, the suitability
of the systems should be checked in workshops in which processes are
simulated using real data from the company. At the end of this, a con-
tract will be awarded to one of the final potential suppliers and work can
start on the practical implementation.
3.3.5 Introduction of MES in the company
The implementation plan forms the foundation for the introduction of the
MES system. It specifies the various stages in the introduction process and
the sequence of the organizational units into which the system is to be
successively introduced. It has proved helpful to introduce systems of this
kind gradually and not in one fell swoop. Here it makes sense, correspond-
ing to the 80:20 rule, to begin where the greatest potential for rationaliza-
tion is located and where there is the greatest possibility of including high-
tech machines and installations. Rapid, conspicuous successes are good for
the image of the project and give the impetus needed for full-coverage
implementation. To prevent set-backs from occurring, the real-time opera-
tion of the system must be thoroughly prepared in advance. In addition to
the necessary user training, what is of prime importance here is the seam-
less and consistent availability of the data which the MES system needs.
Here, too, the old rule still applies: garbage in, garbage out. Problems
which occur during the introduction phase must be documented and pre-
cisely investigated. The actions taken to correct faults must be anchored in
the introduction process in such a way that they can also be used for future
fault prevention. Throughout the introduction phase, compliance with the
implementation plan must be monitored not only as regards scheduled
milestones but also as regards deviations from target and corrected where
necessary. Right up until the end of the introduction phase, reports will be
prepared at defined intervals regarding project progress and submitted to
those responsible in general management. Once the introduction program
has been completed in accordance with the implementation plan, the pro-
ject will be formally concluded. Among other things, this means that the
costs arising in subsequent periods will be clearly fenced off and that, for
example, further services on the part of the supplier will either concern
new projects or should be posted as recurring costs.
3.3.6 Operation of the MES solution
Added-value processes in companies are in all cases also characterized by

change. For this reason it is only natural that deviations from objectives
may occur even after the introduction of an MES system. On the one
hand, different behaviors or processes may “sneak in” which conflict with
the original objectives or which support them less. On the other hand,
however, even the tactical or indeed the strategic objectives of corporate
management may shift, as well as the systems supporting the achievement
of these objectives. In this regard the MES system, even after its success-
ful introduction, will remain subject to monitoring and auditing by those
responsible in the controlling and organization departments. The phase
when the MES solution is in operation is, however, also the time when the
cost-benefit analysis is finally finished and conclusions must be drawn
regarding the economic success of the project. This will be based on the
same key data and measured quantities as were used as a basis for the
requirements analysis. In this way management obtains not only informa-
tion about the success of the project but also about the company’s project
capability as well as pointers regarding possible necessary improvement
measures.
3.4 Innovative technologies in the MES environment
Planning and introducing the MES in order to improve information proc-

essing in production is not a one-off process but rather a decisive step to-
wards a successful future. Here, however, the MES should not be taken in
isolation but other fields of software technology should also be considered
which include the factory as an information-processing system either di-
rectly or indirectly. The current and also the future role of the MES must
be clearly defined if the right directions are to be set for the future.
3.4.1 The digitized factory
In recent years a widespread trend towards going digital has been notice-
able in classic technologies. Familiar examples of this include digital tele-
vision, digital telecommunications and digital photography. What all of
these developments have in common is that today digital technologies are
being used instead of analog signal processing and transmission. On the
basis of modern standardized information and communications technology
it is possible on the one hand to develop more powerful and more flexible
products offering innovative services but also on the other hand to reduce
3.4 Innovative technologies in the MES environment 77
the incidence of media discontinuities and technology-related incom-

patibilities.
The trend towards digital products has also long been underway in
automation technology and in the production and logistics systems based
on this. More and more often hardware is being replaced by software.
What is of decisive importance is that even in this sector there is increasing
reliance on standard IT and software. For example, proprietary field bus
systems are being replaced by Industrial Ethernet, programmable control-
lers by soft PLCs, and special operator panels by PCs with standard Win-
dows operating systems. In addition, in the future bar codes are to be re-
placed by intelligent labels (RFID chips) and cable-based communications
networks by wireless technologies.
In other words, digital products and systems are spreading not only in
the consumer environment but also in manufacturing areas. The products
and production resources to be managed or controlled in the factory are
becoming more and more communicative and mutually compatible. At the
same time, however, the abundance of information and information paths
to be managed by means of suitable IT and software systems is growing.
In this context MES could perfectly well take on the role of a “backbone”
for the factory, acting as a connecting element between the factory and the
rest of the IT world.
3.4.2 The digital factory
With the digital factory, the main point of interest is not the actual working
manufacturing plant but rather the ability of production to change and its
flexibility. It is not only full-scale production which is continually faced
with the task of replanning factories in response to new products, means of
production or bottlenecks or of optimizing individual production proc-
esses. The digital factory now aims at securing an entirely digital planning
process for production and factory including methodical and computer-
based support. In this connection a large number of software tools have
now appeared which are used primarily in production planning and factory
design. The software tools create images of the machines and products
together with their complete structures, logistical sequences and techno-
logical processes, going down into the smallest detail. They are then tested
on a virtual basis and where applicable improved. What emerges is a well-
grounded digital model of the factory, before it is even built or converted.
Today the digital factory offers the greatest potential for companies with
long planning cycles or complex production processes. It is therefore no
wonder that automotive manufacturers in particular are massively pushing
forward the deployment of these technologies and are almost in a state of
competition in their implementation. No one disputes the advantages of the

digital factory for the planning process as regards shortening the start-up
period, reducing planning errors and bringing down planning costs. In the
meantime it is however becoming more and more clear that there is still
a considerable potential for rationalization and optimization in the linking
together of the digital factory and the physical factory. Feeding back real
data from the factory into the digital factory has made it possible to succes-
sively improve the underlying planning models and have them reflect reality
more closely. It is entirely conceivable that the digital factory will in future
not only support sporadic planning processes but also be used as a tool for
carrying out permanent optimization of operational processes in the factory.
3.4.3 The factory with real-time capability
Today, if the situation as regards information processing in the factory is

examined as a whole, this will reveal the existence of various systems and
information flows:
Products to be manufactured are designed using CAD and are then
manufactured and assembled on the basis of NC programs and drawings
derived from this.
Orders and operation sheets are planned with ERP and then finely con-
trolled operationally via MES.
Factories or production processes are simulated using the tools in the
digital factory and then transferred into operational practice.
Machine data are collected in the machines and installations and re-
ported back via monitor screen or networks.
There is a general problem in the fact that these information processes
are still encumbered with a large number of media discontinuities and in-
terfaces. It thus proves extraordinarily difficult to react quickly to changing
background conditions and task demands in the factory. In the light of this,
research is already tackling the more advanced concept of the “real-time–
capable factory” whereby the physical factory and its information and
communication processes are given the ability or the authorization to react
in real time to changed general conditions, faults and the like. Some ap-
proaches to implementing the real-time capable factory as regards informa-
tion and communication processes include for example:
Real-time acquisition of production or logistics data via passive or ac-
tive RFID systems
Real-time process control of machines and installations via Industrial
Ethernet
3.4 Innovative technologies in the MES environment 79
Real-time data are reported with minimum time lag for updating ERP
planning
Online provision of collected real-time data for simulation purposes in
the digital factory
Direct processing of 3D product data in production equipment such as
controllers (technology-dependent)
Even if these approaches are still a long way from reality and may pos-
sibly be discarded as wishful thinking, they do nevertheless show what
problems and what goals still have to be dealt with. The basic technologies
for implementing these possible solutions in many cases already exist.
Furthermore, intensive work is going on to get these technologies to func-
tion even better together and to reduce existing media discontinuities and
incompatibilities. Further development of the system landscape and its
practical use will however depend to a considerable extent on how pre-
pared companies are to invest – even more strongly than in the past – in
efficient and flexible information processing in production.
We are firmly convinced that even today a systematic use of software in
production can deliver considerable added value as regards transparency,
flexibility and productivity. Opening up this potential would greatly profit
not only the manufacturing companies but also Germany itself as a produc-
tion location.
4 MES: the new class of IT applications
4.1 Introduction and motivation
It was explained in Chap. 2 why real-time information is so important to

those operational departments working close to the manufacturing event,
such as production planning, production control, maintenance, quality
assurance and especially the foremen. But if we look at the actual situation
in the companies, it will be noticed in many cases that even today, in an
age of modern, IT-supported systems, the procurement of information still
leads a shadowy existence. Employees working in the above-mentioned
departments are, if need be, provided with information from isolated island
solutions, if at all. To get the necessary “all-round view” of all resources
involved in production, the information must be brought together and sup-
plemented by manually collected data. For today’s production processes
with their short control cycles the consequences are fatal: information is
often incomplete or even erroneous, it comes too late and the action which
is taken is often based on hunches or guesswork – in other words, on find-
ings which are not irreproachably grounded. To close this gap is one of the
most important tasks of MES systems.
However, the acquisition and evaluation of data only covers one direc-
tion of action. Modern management approaches assume that the relevant
information must also be available at the machines, installations and work-
places – in other words, be directly accessible to the workers. Without
being kept comprehensively informed, the employee will not be able to do
his job in production to the benefit of the company. Today this means not
only supplying him with the correct work instructions or inspection in-
structions or with drawings in their latest versions but also with further
information regarding, for example, problems previously encountered in
manufacturing the same part. In line with the group working concept it is
in addition absolutely essential that the workers also be allowed to view
the relevant key data (utilization ratios, reject rates, bonus criteria, and so
on) for the production results of the work group, of the foreman’s sphere
of responsibility or of the department, and on this basis be able to collabo-
rate in improving the production results.
82 4 MES: the new class of IT applications
As before, in many production facilities today data are still sent to pro-
duction by the conventional, paper-based method. Time tickets and pro-
duction papers are printed out directly from the ERP/PPS system, sorted
manually and distributed to the relevant foreman’s offices. This was not
particularly disadvantageous in its effect in those days when production
planning was characterized by fairly long change cycles. Today there is in
many cases a time lag of several days between printing the papers for a job
and when work on it actually starts and this is increasingly becoming
a problem: short-term reactions to the changes (target dates, delivery quan-
tity, quality, and so on) which today’s customers demand of their suppliers
as a matter of course have to be updated by hand on the already printed
paperwork or the documents have to be entirely redone. The resulting
problems which arise should be familiar enough, not to speak of the enor-
mous organizational outlay.
With its systematic orientation to the requirements of those employees
working in the production front line, with the MES systems there arises
a new class of IT-supported applications which go beyond the classic ap-
proaches of ERP or PPS systems or of automation technology, which permit
new ways of looking at things and which provide a tool tailored to the actual
practice experienced by workers, foremen, maintenance engineers, produc-
tion schedulers and QS officers when they carry out their daily duties.
4.2 The current situation in the manufacturing company
In the following sections we shall be describing the classic methods of

information procurement and of production control and also the problems
which could arise for the above-mentioned group of individuals.
4.2.1 Tools and systems for the operative level
ERP/PPS systems
A consequence of the fact that manual entries on time tickets and routing
cards only become available in the ERP/PPS system with a time lag fre-
quently of several days is that the following rule will necessarily apply: the
closer to real time the information must be, the less the ERP/PPS system
represents a genuine tool for the control of production. Information re-
quired often at very short notice regarding order progress – and thus the
delivery date as well – will, for example, not usually be available until the
entire order has been completed. Due to the fact that the information is
posted retroactively, information about material and inventory stocks (raw
4.2 The current situation in the manufacturing company 83
materials, semi-finished products, finished articles) will not be up to date

and in many cases the employees will be laboring under false assumptions.
The necessary consequence is problems with the delivery dates and exces-
sive or insufficient inventories. In addition, evaluations of orders and arti-
cles (including statistical cost accounting) are often carried out solely with
regard to commercial aspects and are only available with the lack of cer-
tainty associated with a manual recording process subject to human error.
If the ERP/PPS system has to be used not only for its actual job of serv-
ing as a rough planning instrument but also as a tool for production con-
trol, problems will arise in the detailed planning. Even today a large num-
ber of ERP/PPS systems are still planning on the basis of an infinitely
available capacity in production equipment. In practice there are however
limitations in availability due to empty shifts and unpredictable circum-
stances, such as machine faults, insufficient personnel with adequate quali-
fications, unsatisfactory quality of raw materials, lack of corresponding
tools, and so on. This lack of real-time status messages about these events,
the lack of a suitable systematic facility to make this possible, and the lack
of control mechanisms in the ERP/PPS system, all make the production
control loop simply too sluggish. This in turn rules out a timely control
response to counteract bottlenecks and situations of conflict. Production
progress does not run as planned and delivery date statements made earlier
bear no relation to reality.
Automation technology
The primary task of automation equipment is to regulate or control instal-
lations, processes and machines on the technical level. During recent years
systems of this kind have however developed more and more into an in-
formation medium as well. As a rule it is not a problem for them to ac-
quire, store and evaluate process values or other technical data such as, for
example, machine faults. Where a shortfall can be detected when produc-
tion processes are considered in their entirety is that they have no relation-
ship to planning or logistical data. Although the foreman or production
scheduler can read off the technical state of the machine directly, the rela-
tionship to the corresponding order whose manufacturing progress is af-
fected by the fault has to be established manually in a roundabout fashion.
Nor is the machine control unit in most cases aware of other resources
involved in production, such as tools, the material or even the personnel.
Quality systems
Logically enough, quality assurance systems focus on all events which
have to do with the subject of quality. Although there is in fact a direct
relationship between the production process and the quality produced, QA

systems often operate autonomously and without being integrated into
production. There is no system-based connection between the production
order and the inspection order and the result of this is that there is no direct
planning of inspection orders or inspection, measuring and test equipment.
In addition, quality data is analyzed without the necessary link to the un-
derlying causes of quality problems on the shop floor (non-conformances
caused by personnel error, poor material, tools, standstills and so on).
Usage recorders for logging machine data

The situation with these devices is similar to that with automation equip-
ment: they have a one-sidedly technological “attitude” and the relationship
to orders, to operating personnel or to the tools cannot be established, or
only indirectly. Before it is possible to obtain electronic evaluations, the
data have to be read out and then input manually into a separate system.
Another disadvantage is the recording process which is complex, requires
intensive servicing and is also expensive (consumption of special forms,
ink cartridges, and so on), not to mention the entire organization which has
to put it place for supplying the consumables. Even the electronic pendants
of the usage recorders (MDC systems, for example) will not improve the
situation unless an automatic link is set up to the world of the orders.
Obsolete PDA systems

In the case of the PDA systems which were introduced a few years ago and
which are subject to IT-related limits, in most cases users took a special
approach. They were, for example, used as an information source for the
data which are created at focal machines or operations, or when orders are
reported as completed. In most cases they can only cope with evaluating
single-stage production processes (for example, when the focal operation
is injection molding) and are often only island solutions which lack inter-
faces with the ERP/PPS system. In addition, here too a field of view cover-
ing all resources is lacking, for example, covering tools, personnel or ma-
terials.
4.2.2 Manual information procurement and other tools
To find a way out of the deficiencies described above, many companies are
setting up facilities in addition to the systems mentioned with whose help
urgently required information is obtained about the current event or plan-
ning activities supported.
4.2 The current situation in the manufacturing company 85
Planning tables or pinboards

The advantage that the frequently used planning table or pinboard has over
PC monitors is that it provides a clear large-area display of the planning
scenario. Its function is, however, based on printouts of order documents
from the ERP/PPS system and their complicated, manual deployment on
the pinboard. This means a lot of effort required when new orders are
added and especially when already inserted order cards have to be re-
scheduled (urgent orders with a high priority, change in priorities, un-
planned delays). Apart from visualization, the pinboard offers no kind of
support for availability checks, for reviewing concatenated events or even
in ascertaining what is the real capacity available, limited as it is by ma-
chine faults or lack of personnel.
Progress chasers
As has been stated in the preceding chapters, without a PDA or MES sys-
tem no current information about order progress will be available and for
this reason no precise statements can be made “at the touch of a button”
about delivery dates and quantities. But since customers demand concrete
information, in many companies the position of “progress chaser” has been
created. His task is to gather all the necessary information about customer
orders by walking the shop floor up and down. This involves a lot of per-
sonnel time commitment and also means time delays caused, for example,
by searching for parts.
Time tickets and routing cards

These are used for “transporting” the work on hand into the production
areas and making information available about the orders or operations.
They do not, however, always reflect the current status since they are
printed out from the ERP/PPS system and do not automatically keep up
with quantities changed at short notice, with a new machine allocation or
with changes in operation sheets and inspection and test plans. A lot of
labor is involved in the workers filling out their time tickets and no plausi-
bility check is made of the data. Further expense, time delays and often
even errors arise since other employees then have to input the data by hand
into the ERP/PPS system.
Clock cards
Even today clock cards are still used in many companies for documenting
the employees’ clocking-in and clocking-out times and from these working
out the hours they have worked as a basis for wage calculations. This in-
volves a great deal of outlay on administration and materials. Here too
additional labor capacities are required to calculate times and to input them
into the wages and salaries system. In addition, an overview of which em-
ployees are present and absent is only available locally at the time clock.
Work instructions, drawings and inspection and test plans

Printed information is also a medium to which workers, line engineers,
inspectors and foremen are accustomed. However, even these documents
do not always show the current status since printing from the ERP/PPS,
CAD or QA system does not take place in real time when production
starts. A huge organizational and administrative overhead is involved in
preparing, updating or distributing the documents.
4.2.3 Problems in bringing together the data
The systems and tools described above are in most cases island solutions and
offer no way of exchanging data with other systems or if so only to a limited
extent. The necessary all-round view is not however possible without an
exchange of data or a comparison of data. Let us provide a few examples:
To ensure gapless registration of productive times, the employees’ at-
tendance times are compared with the productive times from PDA. This
comparison is absolutely essential if performance-based or incentive
payments are made.
In short-term manpower planning the foreman on the one hand needs
the information from time-off planning and staff work time logging
(who is actually at work?) . On the other hand, the job load which has to
be managed must of course be available as a result of detailed planning
in order to make it possible to determine personnel requirements.
Data must be brought together from different areas and systems when an
explicit POP (proof of product) is required and when it must be docu-
mented which employee made which part using which tool on which
machine under what process conditions and using which batch of raw
materials.
4.3 The situation as it ought to be
Looking at the actual situation we have described, it very rapidly becomes

clear that procurement of information, the information flow and detailed
planning in the manufacturing company have to be significantly improved.
4.3 The situation as it ought to be 87
Which general conditions will have to be observed and what benefits an

MES system can offer will be dealt with in the following sections with the
aid of a number of representative examples.
4.3.1 Gapless automated data acquisition
The road to networked information in production commences by collecting

data from all relevant resources and processes as gaplessly as possible and
storing them in an all-encompassing database. In contrast to the traditional
recording method, with an MES the value-adding process are recorded
online and “without
With their holistic approach MES systems will deliver a further jump
forward if not only the productive times are registered but also those ancil-
lary and ineffective times which today are typically ignored (burden rates,
waiting, transportation or queuing times) as well as idle times and down-
times. This automatically produces a better database for statistical cost
accounting and for tracking down the real origins of costs.
It should however be noted that the completeness of the data is directly
related to the effort put into acquiring the data. MES systems will cause
acceptance problems if the additional load on the employees no longer
stands in reasonable relationship to the beneficial effects which can be
achieved. For this reason simplifications should be made here in a form
whereby the data are, for example, automatically acquired via a direct con-
nection with the machines, weighing devices and other equipment, and
manual data input is eschewed as much as possible. The use of machine-
readable identification bearers (such as bar-codes, transponders, RFID
Fig. 4.1. The integrated production database as a necessary condition of the “all-
round view” in production
tags, and so on) for transferring the saved data renders superfluous the
expensive and potentially error-riddled method of typing the data in manu-
ally. Mature MES systems also offer additional ways of making things
easier such as data acquisition logic units which considerably reduce the
time and effort involved in inputting data. Some relevant examples:
In the case of orders whose processing times extend over several days,
when the employee clocks off at the end of his shift he “pauses” his cur-
rent job only to resume it automatically when he clocks back on again
the next morning. In this way the order no longer needs to be repeatedly
suspended and resumed manually.
The time difference between the completion signal for an operation
forming part of a multistage order and when the successor is logged on
is automatically interpreted by the MES as transfer time or burden time.
Separate postings are not required here.
Several events of short processing duration are simultaneously logged
on and off at a PDA terminal as so-called collective operations. This
disposes of problematic inputting and travel times. The MES automati-
cally posts a proportional time for the individual events on the basis of
configurable rules.
4.3.2 The information point for production
The introduction of production-proximate systems is usually also bound up

with the installation of an IT infrastructure which extends as far as the
work centers and machines. Powerful MES systems also have the ability to
use existing networks, industrial PCs and data collection equipment to
convey data and information electronically – in other words, “paperlessly”
– to the right place in production. Alongside known saving effects, the
MES systems thus create a new level of quality for the line engineers and
machine operators: they are provided with comprehensive up-to-date in-
formation which thus enables them to collaborate actively in the design of
the production processes. Some relevant examples:
Planning data such as orders on hand, customer deadlines, machine
maintenance, personnel availability, and so on.
Display of information about the current order (quantity already produced,
calculated lead time remaining, labor utilization rate so far achieved, and
so on).
On-screen presentation of photographs, drawings, videos, parts lists,
work and inspection instructions with the option of printing them out if
necessary.
Fig. 4.2. Evaluation of machine idle times
Performance comparisons and statistics regarding reject rates, deadline

delays, key data, reasons for idle times and downtimes etc. so as to be able
to estimate the status of individuals, of the department or of the entire plant.
Current target/actual comparison for key data such as machine utiliza-
tion ratio or order fill rate and machine performance or cycle.
Personal information about remaining vacation, overtime or flextime ac-
counts or about the performance rate achieved in the case of bonus or incen-
tive pay. Figure 4.2 shows by way of example how employees are kept com-
prehensively informed and can thus be included in the decision-making
processes: evaluative material regarding machine idle times for any selected
period is available at the information point. Naturally it is also possible to
print out overviews of the key data and statistics worked out in the MES and
then to publish them in paper form in the production department concerned.
4.3.3 The concept of the “manufacturing cockpit”
In many companies the duties of a production scheduler, maintenance tech-

nician, quality assurance representative or foreman are the same as those
of management and are comparable with the duties of a pilot. Problem
situations must be detected rapidly and suitable action taken with the
smallest time delay possible in order to prevent escalation from occurring.
So why shouldn’t the cockpit concept also be applicable to production? For

this to be possible, the difference which still exists today – that unlike the
cockpit of an airplane, at the switching points in production the required
information is available either insufficiently or too late – must be compen-
sated for by integrated MES systems.
Since each level in the company would naturally like to have its own way
of viewing the data, one major task for MES systems is to link, evaluate, con-
dense and make available the data in a suitable form such as overviews, lists
or graphics, for example. The decisive point here is that all evaluations and
statistics must be based on the same data pool and their veracity and up-to-
dateness thus be so assured that the data can be used as a basis for decisions.
The following list should serve as an example to illustrate which typical
functions associated with the concept of a manufacturing cockpit can be
offered by a correctly designed MES system to the relevant functional
areas of a manufacturing company. The focus here is on cross-domain
functions – functions, in other words, which simultaneously permit a view
of different resources.
MES functions in the foreman’s office

Up-to-date overviews of orders and machines to allow rapid detection of
problematic situations
Simple planning tools to enable stipulation of sequence in which orders
will be processed and to enable orders to be rescheduled
Fig. 4.3. Graphical machine park

Planning of vacation and non-productive times for the assigned employ-

ees as part of short-term manpower planning
Up-to-date overviews of which employees are present and which absent
Order- and personnel-specific shift records
Idle-time evaluations for machines and installations
Overviews of the qualities currently being produced
With the graphical machine park shown in Fig. 4.3 the foreman has at all
times an overview of the current status of his machines and orders. The deci-
sive advantage here is that all information is available at the same time, thus
enabling the person in charge to react immediately. In this way a time-lagged
statistics function is turned into an active closed-loop control function.
Operations planning and production control

Multi-order analyses of production progress including extrapolation
functions and automatic planning aids
Lists of materials to be processed and retooling lists
Complex detailed planning tools on the basis of graphical planning tables
Order and article statistics permitting inferences to be drawn as to “how
things went” for an identical part in previous orders
Availability analyses and checks for machines, tools, personnel and
materials
The graphical planning table is the central information and detailed plan-
ning instrument in production control. Capacities are displayed in the table
Fig. 4.4. Graphical planning table

for both their current and also their future states, with no need for data entry.
This means that imminent conflicts can be detected in advance and corrected.
Maintenance
Graphical machine park with an up-to-date display of machine statuses
(for example, even including a projector in the shop)
Maintenance calendar for machines and tools
Statistics for cause of problems, with configurable levels of detail
Fault class evaluations
Graphic plots (profiles) of key data important to maintenance (curve
plotted for degree of utilization, machine cycle, and so on)
Statistics relating to problem causes and idle-time statistics as shown in
Fig. 4.5 make it possible for the person in charge (group, foreman, mainte-
nance engineer, and so on) to specifically track down what is causing prob-
lems in machines and installations.
Fig. 4.5. Statistics for origin of problems
Quality department
Automatic generation of inspection orders on the basis of stored inspec-
tion and test plans
Online counting of parts produced and automatic monitoring of random
sampling frequencies on the basis of an integrated terminal with PDA
and SPC functions
Production control station with facility for checking the availability of

inspection and test plans
Registration of batch and lot information within the normal PDA entries
Generation of product history record for intermediate and finished prod-
ucts or of a where-used list for raw materials and semi-finished products
Fig. 4.6. Batch and lot tracking
If batch and lot information is also registered in parallel with PDA mes-
sages, a product history record (batch tree) will be automatically created
for the manufacturing events. Batch and lot documentation is becoming
more and more important, particularly in the light of the requirements of
modern certification rules (ISO 9001/TS 16949). In general it is true to say
that a very large number of auditing requirements cannot be cost-
effectively solved today without an integrated MES system.
Controlling and management

Evaluations of the percentage utilization of machines and of free pro-
duction capacities in short- and medium-term planning periods.
Support for the continuous improvement process by means of long-term
observation of changes in utilization rates and other key data.
Use of manufacturing scorecard methods (MSC) (Kletti and Brauck-
mann 2004) for the continuous monitoring of defined objectives.
Condensed evaluations and statistics relating to “problem areas” in the

company such as sickness levels, delivery problems, failure to meet
deadlines, trends in scrap rates, problem originators (machines, tools,
produce parts), trends in queuing times, and so on.
Fig. 4.7. OEE index for calculating group capability
Management uses condensed evaluations and separately determined key

data such as the OEE index (overall equipment efficiency) in order to be
able to precisely evaluate the efficiency of machines and installations. Ob-
jectively measurable key data are thereby made available to the operational
level for the first time and thus become the foundations for a process of
continuous improvements. In the past it was not possible in particular to
solve the problem of process-relevant objective key data on the basis of
accounting department capabilities.
Personnel department
Up-to-date attendance and absence lists.
Delegation of time-consuming routine activities (approvals of vacation
applications, reception of notifications of sickness, planning relating to
non-productive time) to the foreman and thus to the place where the in-
formation usually comes in directly or where it needs to be processed
anyway.
Comparison lists which provide an automatic comparison of attendance
times and productive times.
Automated calculation of performance-based or incentive payments and

the necessary automated integration in wage and salary systems.
Setting up a personnel information system with data which would, for
example, be useful in short-term manpower planning.
The shift plan in Fig. 4.8 will display at the touch of a button how many
and which employees are available on which day for which shift, and
which non-productive times are planned in (due to vacation or further
training, for example).
Fig. 4.8. Personnel availability
4.3.4 Escalation management and workflow
What virtually all of the examples we provided above have in common is

that the data are called for as needed by the corresponding organizational
units. An entirely new quality of information provision is offered by MES
systems which include an integrated escalation management function and
an individually definable workflow process based on this. The decisive
advantage lies in the required information being directed automatically to
the correct location and the person in charge no longer having to actively
trouble himself with doing this. This means we have real-time notification
when a critical situation arises and it is necessary to intervene in processes
which are running.
In addition, a workflow can be created for each escalation or for each
event. Within this workflow it is specified how notification will be imple-
mented (for example, SMS on cell phones, by email, as a pager message,
or as a pop-up window on the PC screen). If the notification is not ac-

knowledged by the receiver within a specified time, the next escalation
level will ensure that the message is also sent to his deputy or his supervi-
sors. A number of examples will now follow which are intended to illus-
trate practical applicability in the manufacturing environment:
The maintenance technician receives a message on his pager telling him
that a particular type of fault has occurred in a machine.
A tool has become due for scheduled maintenance. The person respon-
sible in tool making receives an email from which he can read off di-
rectly the tool number and the maintenance activity to be carried out.
The MES system has detected in a machine a violation of an interven-
tion or tolerance limit for a process value (for example, temperature or
pressure). The line engineer is informed of this automatically by SMS.
The inspection interval specified in the inspection and test plan has been
reached during the processing of a job. The quality assurance represen-
tative is informed and is then able to carry out the necessary inspection
immediately.
Communication between the ERP/PPS system and the MES system has
been interrupted for technical reasons during transfer of approved pro-
duction orders. The system administrator receives an email and can ini-
tiate trouble-shooting measures immediately.
Fig. 4.9. Automatically generated workflow for error processing

4.4 Outlook and further development of MES systems 97
An example of a workflow. As soon as a certain value is crossed

a workflow (also predefined) can be generated by the MES which specifies
the involved employees to process the error. All processing steps are writ-
ten to a response tracking file with the date and the name of the employee
responsible.
The screen shot shows an overview of all escalations occurring within
a selected time period. The data evaluated enable conclusions to be drawn
regarding the reaction time, persons involved in processing the problem,
and termination of escalation.
Other typical application cases can also be found in the personnel and
security fields. For example, a workflow can be set up for when an em-
ployee submits his vacation application at an information point (PC or
terminal with web browser) and his supervisor is automatically notified
about this. Following approval or rejection of the application the employee
will receive the corresponding message at the time registration terminal
when he clocks out in the evening.
4.4 Outlook and further development of MES systems
To the same extent as manufacturing companies will in coming years need

to meet the changing demands of the market, MES systems will become
more and more important. Short delivery times, high upward pressure on
costs, smaller batch sizes and stricter quality requirements call for a highly
Fig. 4.10. Tracking corrective action

process capable production organization which is able to react flexibly to

the needs of customers and to internal constraints – and do so without
losses in quality or increased costs having to be accepted. Only by using
integrated MES systems will it therefore be possible to reduce internal
friction losses, to produce less expensively and to have better control over
the production processes. In the light of this the MES functions we have
described will in future be an indispensable tool for all company depart-
ments in handling their daily tasks.
Literature
Kletti J, Brauckmann O (2004) Manufacturing Scorecard – Prozesse effizienter
gestalten, mehr Kundennähe erreichen – mit vielen Praxisbeispielen [The
manufacturing scorecard: designing processes more efficiently, achieving
greater customer orientation, with many practical examples], Gabler, Wies-
baden
5 Building an MES system
The demands made of a modern MES system mean that these systems
must be given an appropriate structure. Island solutions or even classic
PDA systems are biased towards being able to run several monolithic
software modules in parallel on one integration platform. Users have al-
ways wanted these monolithic modules to be able to communicate with
each other. Unfortunately the reality was often different, such as, for ex-
ample, the fact that in one earlier PDA system the shift performance of the
machine and the number of parts produced for that operation had to be
input in two separate dialogs at the end of the shift.
One of the most important reasons for these problems was the demand of
the market for a standard software system. Instead of requiring individual
programming and thereby making it necessary to carry out a corresponding
analysis of requirements, these standard products promised the user a fast
and inexpensive way to reach his goal. The limits of these solutions are
easy to see from the example cited: mutual integration of these products
only occurred at precisely the place where it was explicitly planned. Should
this integration not have originally been deemed necessary, it would not
then be available when actually needed and would thus have to be pur-
chased later on, and in some cases at considerable expense.
In recent years manufacturers of MES solutions have been engaged very
intensively on breaking through the limits of existing software architec-
tures. The keywords “process mapping”, “business logic” and “process
workflow” have in the meantime become familiar to every decision-maker
and to every consultant in the MES field. Here an analysis of the concepts
very rapidly reveals that in many cases they are understood differently. In
fact behind the term MES and the corresponding concept is a modern soft-
ware architecture which should basically cover the following requirements:
Complete mapping of all requirements beneath an ERP/PPS system (so-
called horizontal integration)
Availability as standard software with the following properties:
Modular software structure
Expandable in accordance with the requirements of the user based on
current standards
100 5 Building an MES system
Simple adaptability of the standard modules not only to the processes

but also to the functional requirements of the user
Availability of standardized interfaces on all levels
The first two points are a basic requirement of any MES system which is
to be taken seriously. Without complete coverage of all the user’s require-
ments under an ERP/PPS system the user will be purchasing precisely the
problems he is actually trying to avoid. The standard software mentioned in
the second point above must, as will become clear later, be available in
conformity with the requirements of the MES architecture and will there-
fore differ from the old monolithic standard products mentioned at the be-
ginning. Only then will it be possible to fully exploit the advantages relat-
ing to adaptability to the user’s processes. With the fourth point,
a flexibility is provided which marks out an MES system as an open and
expandable system. The last two points together represent the basis by
which an MES system will in future be simply and flexibly adaptable to the
requirements of the user regarding the mapping of his changing processes.
This chapter describes the architecture and the structure of an MES sys-
tem together with the components it needs. The reader will thus gain an
overview of the individual constituent parts of an MES system. It should be
possible on the basis of this information to select and evaluate MES systems
by their operative capabilities and flexibility. This chapter will also seek to
provide information on how a modern MES system can handle the variable
mapping of processes which is so important to the modern company.
5.1 Software architecture of an MES system
The architecture of modern MES systems is also oriented like other busi-
ness solutions by the so-called “business service architecture” or “enter-
prise service architecture” (ESA for short). An important reason for select-
ing this architecture is that during the life cycle of an MES system new
demands are continually arising which need to be implemented in a virtu-
ally never ending process.
The individual layers of the architecture of a modern MES system and
their special features are explained in the following sections.
In addition to ensuring the delivery of predominantly technical proper-
ties, both the architecture and the basic functions of an MES system have
a special importance. Provided that both the architecture and also the basic
functions are properly defined and implemented and the basic functions
are oriented to the standards usual in the market, this will form the best
conditions for an open, expandable and future-proof system.
5.1 Software architecture of an MES system 101
Fig. 5.1. The software architecture of an MES system
This is why many proprietary systems suffer from the lack of a global ar-
chitecture or from the absence of any way of allowing new technologies to
feed in rapidly and smoothly within the basic functions without unwanted
effects on the applications themselves and thereby constituting an IT risk.
5.1.1 Basic functions
The basic functions of an MES system are a collection of software functions

which are available independently of a particular product and which enable
the products based on them to be developed as far as possible using the same
modules and with a uniform structure. As has already been shown in the
previous section, a good basic functionality allows technologies to be in-
corporated or replaced without this affecting the individual products.
The basic functions will therefore provide separation of the MES appli-
cations from the technical components which form the basis of any IT sys-
tem. In practice the users, often compelled by corporate policies, want
a change in the operating system, a change in the database system or
a change in the communication protocols for their MES application. These
modification requirements alone also demonstrate the fast-changing nature

of the IT sector and show how important it is that modifications of this kind
do not, if at all possible, have any effect on the applications themselves.
In more detail, the most important functions and objective of the basic
function are these:
Provision of a uniform interface to the underlying database with the aim
of securing database independence. A modern MES system supports
several SQL database systems. The most important of these are Oracle,
Microsoft SQL Server and also the IBM databases Informix and DB2.
Database independence is particularly important to an MES system
since, due to costs for licenses and administration expenses, it is then
a simple matter for the user to swap database systems.
Provision of a uniform interface to the underlying operating system with
the aim of securing operating system independence. The leading operat-
ing systems in which MES systems can be used are Microsoft Windows,
Linux and also the Unix derivatives IBM AIX, HP UX and Sun Solaris.
The reasons for not being tied to a particular operating system are often
the same as for database independence.
Provision of communication facilities
Examples:
Secure network communication on the basis of TCP/IP
Bus systems in production
Provision of components for typical MES tasks
Examples:
Components for displaying business diagrams
Components for the temporary storage of data
Components for the secure acquisition and checking of data
Provision of interfaces and functions for incorporating products with the
components data layer, application layer, and process mapping.
Provision of separate database partitions for OLTP1 and long-term stor-
age to ensure response times on the one hand as well as medium- and
long-term availability of data on the other hand.
Provision of technologies for interfaces
Examples:
Web services
OPC
Excel export or XML export
Various file formats
1
OLTP is an acronym for online transaction protocol and is used here as
a synonym for the real-time database section of an MES system
Product-independent alarm system with the corresponding communica-

tions terminal points, email, cell phone, pager and so on (so-called esca-
lation management).
Functions for logging, monitoring and tracing (for example, for the
rapid detection and locating of fault states).
For an open system it is also important for the MES manufacturer to
keep some of his interfaces open, particularly for those interfaces and
functions relating to integrating products. If this is the case, then partners
or even IT-savvy users will potentially be able to integrate their own appli-
cations into the existing MES system.
Especially when an MES system is used in food or pharmaceutical in-
dustry it is subject to additional technical requirements relating to so-called
“FDA conformity” which will ideally already be reflected in or at least
supported by the basic functions of an MES system. In addition, a supplier
of suitable MES systems to the food and pharmaceutical industries will
have knowledge and experience of engineering and developing software in
conformity with FDA requirements.
5.1.2 Data layer
The data layer is that part of the MES application which is responsible for
the definition of the database structures as well as for the data stored in them
and thus looks after the so-called persistence of the data. Every MES prod-
uct possesses the data model corresponding to one version of a product.
Today this data model is normally stored in relational database systems and
the corresponding data processed by means of SQL (structured query lan-
guage).
The necessity of defining a data layer reveals itself in the overall view by
the way products are mapped in the architecture of a modern MES system.
It can be seen from the diagram above that the products in an MES sys-
tem are spread over three layers of the system architecture. From this
model a rule can be derived in the form that changes in or expansions of
a product whenever possible take place only in one layer. This rule ensures
stability and reduces the effort required to implement changes. The change
itself takes place precisely in the layer which is responsible for the change.
Here the data layer handles the task of ensuring that the data for an MES
product based on the underlying database system can not only be written
reliably and permanently but also read again. The data layer defines the
necessary tables and fields in the database system. All changes, modifica-
tions and product expansions relating to the persistence of data will thus
take place in this layer. Other examples of intervention in the data model
Fig. 5.2. Product image in the enterprise service architecture
are changeovers of database structures due, for example, to new function-

alities or to a further system expansion into additional production areas or
to cover additional applications. It is therefore clear that the data model
often undergoes technical changes which conform only to a qualified ex-
tent with the requirements made of the application.
This gives the user the ability to access the data layer directly via reporting
tools in order to produce his own analyses in an elegant and simple manner.
Due to the changes we have described within the product, when the product
is upgraded or when there are new versions of an MES product it frequently
happens that the evaluation based on the data layer needs to be adapted to the
modified data layer. From this it follows that direct accesses to the data layer
cannot be classified as “release-proof”. Compatibility with future releases
will not exist unless access to the data is via the application layer.
5.1.3 Application layer: business objects and methods
The application layer depends on the data layer and makes functionality
available to the process mapping. The application layer covers the follow-
ing important requirements:
The application layer provides the objects and corresponding methods
for creating the business logic in the process mapping layer.
What is meant at this point by an object is, for example, “Machine 3523
with associated data” or “Operation 7330022 010 with associated data”.
A method means the functions by which the data of the object can be
processed or functions which trigger actions for the object, such as log-
ging someone onto a machine, for example.
The application layer supplies its objects and methods irrespective of the
data model. This procedure ensures that if there are changes in the un-
derlying data structures the application layer will look after the neces-
sary compatibility and the objects and methods will behave in their
normal way. In the case of new functions, the application layer will ex-
plicitly make new objects and new methods available for them.
The demands made of the application layer show clearly that this layer
has the important job of getting necessary technical modifications under
control so that the process mapping can function as normal. Provided it
has been correctly implemented, the architecture of an MES system will
thus ensure that changes do not negatively impact already defined proc-
esses.
5.1.4 Process mapping
The process mapping has the job of reproducing the actual business logic
on the basis of the methods and objects of the application layer. One syno-
nym for the term business logic is enterprise logic.
Via interfaces or graphical interfaces the process mapping receives mes-
sages including the corresponding data which essentially are then proc-
essed via “if-then” conditions and the use of the objects and methods of the
application layer. The process mapping thus contains the actual logic of an
application or of a product and in addition makes use of the underlying
layers. One important characteristic of the process mapping is that the ob-
jects and methods of all products are at its disposal. This means that sev-
eral products can be “woven” together in the process mapping without any
problem, something monolithic products do not permit.
This advantage becomes considerably greater if further products are to
be added at a later date. If necessary, the methods of the new products will
simply be incorporated into the existing process mappings. It should now
be clear that these possibilities permit complete horizontal integration and
interweaving of the applications, something which can also be carried out
gradually.
A further advantage of the process mapping is the high degree of compati-
bility with future application releases which this layer provides. The under-
lying layers ensure compatibility in the event of revisions and modifications
such as product upgrades, for example, so that the process mapping created
is not affected.
For the if-then relationships, the classic configuration settings can be
used as before. These are supplied to the process mapping from the appli-
cation layer by means of the corresponding methods. The if-then condi-
tions we have mentioned can, however, also be represented graphically:
the result is the so-called workflows. The advantage of a graphical repre-
sentation is that on the one hand these workflows offer clarity and describe
process flows in a readily comprehensible manner while on the other hand
there is also the possibility of creating these workflows in electronic form
and then generating the process mapping from them.
5.1.5 The advantages of ESA architecture for MES systems
In systems without an architecture of this kind, changes in the processes

and process sequences of the user often mean immense trouble and costs
within the software being used since considerable intervention in the stan-
dard processing routines is required, particularly in the case of product-
independent changes. The architecture we have described of an MES sys-
tem can, when used correctly and consistently, guarantee considerable re-
ductions in costs and a faster implementation. In the most favorable case all
that is needed is an intervention in the “process mapping” – in other words,
the standard products being used need no modifications.
Other advantages of an ESA architecture for MES systems:
The limits of classic configuration methods disappear with the ESA
architecture and new possibilities such as graphical workflow deliver
clarity, transparency and security.
A complete horizontal integration is realistic and expenses are much
lower than before.
It is now a good deal easier to introduce the solution gradually.
Processes can be mapped in the form of graphical workflows.
It is much easier to modify the process sequences than is the case with
monolithic products, even after the introduction phase.
The risk of new errors creeping into existing process sequences is re-
duced.
Changing products involves less effort.
There is a reduction in test phases and testing expenses.
Partners or even IT-savvy customers are potentially able to create
equivalent products or modules at the MES supplier.
5.2 Interfaces of an MES system 107
The following diagram shows the difference in a product-independent

change between the classic architecture and ESA architecture.
Fig. 5.3. Planning depths with monolithic architecture and with Enterprise Service
Architecture
As can be seen, in monolithic architectures, interventions in several

standard products are necessary and these changes must also communicate
with each other correctly. Within an ESA architecture, the change can in
the most favorable case be made by setting up a new process which uses
existing calls to the standard products.
This method will thus be possible when the products of the MES sup-
plier are structured in a way corresponding to the ESA architecture – in
other words, in addition to the user interface and the associated interfaces
these products have their own data layer, their own application layer and
also their own process mapping.
5.2 Interfaces of an MES system
Interfaces means the communication devices which different systems use

for exchanging data. Provision of and support for standardized interfaces is
indispensable to a modern MES system for the following reasons:
MES systems differentiate and automate the processes of ERP/PPS sys-

tems and condense the technical data in the MES environment into in-
formation suitable for these ERP/PPS systems. Interfaces function as
a connecting link between these two systems and look after the ex-
change of data when master data and transaction data are received and
also when actual data, changes and corrections are sent back.
MES systems couple directly to the production process (for example, to
machine controllers, bus systems or RFID reader systems) and thus
make possible the best possible automation of process sequences.
MES systems are increasingly turning into integration platforms for
existing island solutions. Data are passed on to the customer’s existing
systems or collected in from there, then, in the MES system, compared
with the information available there and passed on to the ERP/PPS sys-
tem. Examples of this are existing CAQ solutions, existing CAD and
DNC solutions and also material flow traceability systems.
In principle interfaces between two systems have two components. On
the one hand there is the technical part which looks after communication
and transportation of the data, while on the other hand there is the actual
definition of the data. The sections which follow will basically deal with
the technical part “communication and transportation” since data contents
vary from application to application.
When selecting an MES system care should always be taken that the
system actually supports new communication paths and the data contents
will need to be defined flexibly for the interfaces. How can a state-of-the-
art technology benefit the user when every little adaptation calls for time-
consuming, wearisome programming? In this regard a good MES system
can be recognized by the fact that the data contents of interfaces can be
adapted to the requirements of the customer in the simplest way possible –
as part of customizing, for example.
5.2.1 Interfaces with higher-level systems
The following sections will provide an overview of implementing the task of

“communication and transportation” which must be handled by interfaces to
higher-level systems such as ERP/PPS systems, wage and salary systems. In
addition, brief appraisals will be given of the individual possibilities.
Interface from database to database

The question as to why database cannot simply be linked to database crops
up again and again. Possible technical interfaces for this are not only the
Fig. 5.4. Interfaces with higher-level systems
so-called native drivers from the database manufacturers but also ODBC
or JDBC. The reasons why people wonder about this are obvious since
definitions of the database structures are available and one would expect
that rapid implementation would be possible. As has been stated in the
previous section on the data layer, the data layer belongs to the innermost
part of an MES system and thus could well be a poor base on which to
install interfaces. Database changes, possibly conversion of the database
system and a complete circumvention of the application layer and of the
process mapping, are the clear arguments against an interface of this kind.
File-based interfaces
Although somewhat old fashioned from the technical point of view, as far
as the applications are concerned file-based interfaces still do the job they
should do. File-based interfaces can be set up on the process mapping and
will thus in principle be compatible with future releases. Further advan-
tages are the simplicity of data exchange both in the development stage
and also in subsequent application, the ease with which contents can be
monitored and also the simple possibility of sending processed files to
storage for monitoring purposes. Disadvantages are found in the lack of an
online capability with file-based interfaces since files need to be retrieved
on a cyclic basis. For this reason one preferred use for file-based interfaces
is with middling to larger quantities of data whereby a certain amount of

time lag is acceptable.
In addition to proprietary file formats (ASCII, CSV, and so on), XML
files are being used more and more frequently for data exchange. The ad-
vantages of XML files are the platform-independent storage of data and
the possibility of exchanging these files within web services.
Web services
Currently everyone in the IT field is talking about web services as a pos-
sible cure for a large number of existing inadequacies in software systems.
The essential properties of web services are:
Standardization
Network or internet-based data exchange
Platform-independent structure
Online capability
Ease of expandability
These properties indicate that web services supply all of the require-
ments needed for the tasks which system-independent communication has
to perform. Due to the standardization implemented by the World-Wide
Web consortium W3C, web services offer the necessary long-term stability
and goal-oriented development required for an industrial standard. Web
services in principle support online inquiries, which means that ad-hoc
inquiries in other systems are technically feasible. The way things look
today, web services seem like becoming in the medium term the standard
technology for data exchange between ERP/PPS and MES systems.
RFC and IDOC

This technology comes from the SAP environment and forms a basis for
all online–capable communications interfaces between SAP netweaver and
MES systems under SAP. RFC stands for so-called remote function calls –
in this case, the means of transportation for the data. For this purpose SAP
provides the MES system with a program library as well as a development
environment which allows the interface to be created on the MES side. The
data are transferred in IDOC format (intermediate document) and the data
structure and thus the data contents can be determined from the structure
of this IDOC. The disadvantage of this solution is that the program library
is made available on the SAP side only for the most important operating
systems and that this technology is used only in the SAP environment.
EDI
This interface for the exchange of structured business data is mentioned
only for the sake of completeness. EDI (electronic data interchange) has not
yet played any major role in communication between ERP/PPS and MES.
5.2.2 Interfaces for horizontal integration
Starting out from the architecture of an MES system, all interfaces use the
process mapping to call the defined workflows together with the corre-
sponding data, doing so via the messages which are available (cf. Fig. 5.5).
On the basis of this definition an interface implemented in this way offers
the following advantages:
Interfaces thus use the business logic defined
Even for interfaces there are ways of intervening in the sequences of the
workflows on the level of the process mapping
In this case interfaces offer compatibility with future software releases
With MES systems the user interfaces and data collection systems are
normally based on the process mapping. This makes it possible for the
MES system to start an operation, for example, at a data collection device
and finish it at an information workstation. If the manufacturer of the MES
system does not hide the messages in the direction of the process mapping
and makes this information available to his customers or partners, new
possibilities will then become available on this level regarding how the
MES system can be used. The use of these messages is particularly suit-
able for linking existing systems with a certain intelligence or their own
processing capability to an MES system and thereby making a horizontal
integration possible. If this idea is followed through to its logical conclu-
sion, the MES system will become an integration platform and existing
island solutions will not need to be retired but may instead stay on as spe-
cialized data collectors which pass their data on to the MES system.
5.2.3 Interfaces with production facilities
Interfaces with the actual production facilities, such as machine, machine

group, or production line, not to mention installation controllers, are indis-
pensable to an MES system.
The most important data which an MES system passes on to the produc-
tion facilities are set-point inputs, process value inputs, formulations and
mixes, and also DNC programs. The most important data which an MES
system receives from the production facilities are basically the machine
cycle, counting signals, operating signals, machine status, measured values
and process data.
The idea behind these connections is, First, to realize a high level of
automation and thus to increase economic efficiency and reduce the inci-
dence of wrong operation. On the other hand, requirements concern the
attainment and monitoring of a specified quality in the finished product
and also the quality and monitoring of the production process itself.
Fig. 5.5. MES as integration platform
Proprietary interfaces
There is a large number of interfaces with production facilities and listing
them all here would be beyond the scope of this book. This diversity is
however very much a problem for MES manufacturers and customers
since due to the lack of relevant standards every machine manufacturer up
until a few years ago and in some cases even today is forced to develop his
own, proprietary controllers and protocols with the result that connecting
up a varied machine park often turned out expensive for the user as well as
complicated. In the meantime some MES manufacturers have, as a result
of years of project experience, acquired the knowledge required for con-
necting up the most varied machines and controllers which means that
even heterogeneous machine parks can be economically connected to an

MES system.
However, since there will be further development even here, in future
the machine manufacturers will have to bow to pressure as regards stan-
dardized and open interfaces. Not until then will the user have the security
of knowing that his investments are secure in the relatively long term and
that the costs of connecting a machine into an MES system will turn out as
low as possible.
OPC
By OPC (OLE for process control) is meant a Windows-based interface for
data exchange between two systems. This interface was specially devel-
oped for machine interfacing and has the advantage that, similarly to the
case of web services, a consortium (the OPC Foundation) looks after inter-
face definition and compliance. Further advantages of the OPC interface
technology include:
Getting rid of manufacturer-dependency in hardware and software;
Simplicity in the configuration of the information to be exchanged;
Network capability;
OPC permits parallel access to the data provided by the OPC server.
Euromap 63
Euromap 63 is a standardized interface for data exchange with injection-
molding machines which was defined by the European Committee of Ma-
chine Manufacturers. The Euromap interface has the following properties:
Euromap 63 specializes in data exchange with injection-molding ma-
chines;
Euromap 63 is not bound to a particular platform. Euromap-capability is
rather a property of the controller of the injection-molding machine.
Due to the wide variety of controllers used by the machine manufactur-
ers as also to the fact that the contents of the interface are freely definable
by the machine manufacturers, their actual implementation will vary from
manufacturer to manufacturer. The degree of abstraction will not therefore
be as good as with OPC although it does appear that due to the spread of
Euromap 63 the injection-molding field can count its machines amongst
those most frequently connected to MES systems.
5.3 User interfaces of an MES system
One fundamental feature of MES systems is their user interfaces. The most
important areas of application include, on the one hand, specialized inter-
faces for use in production. On the other hand, an effective configuration of
the system should be possible, as also a clear presentation of the data col-
lected. The section will deal with the technical possibilities and in particular
also with the benefits which MES systems can offer users at this point.
5.3.1 Technologies for user interfaces
Local client
This technology exists in several forms, ranging from the simple cli-
ent/server system to distributed applications in which part of the applica-
tion is no longer executed in the client.
The advantages of this solution:
There is good exploitation of local resources;
Communication only occurs in relation to data exchange;
Complex applications can be realized without any problem.
The disadvantages of this solution:
High administrative cost;
High costs per client.
Thin client
In contrast to the local client, with a thin-client solution only a kind of
interpreter is used in the local workplace computer. Both the interface and
the data are first sent to the client where they then together define the ap-
plication. By means of local data storage strategies at the client end, long-
ish waiting times as the data are loaded are reduced.
The advantages of this solution:
Lower administrative cost;
Low costs per client.
The disadvantages of this solution:
Complex applications take a lot of time and effort to set up;
High requirements as regards the LAN infrastructure;
Limited possibilities in the graphical representation of technical situa-
tions.
5.3 User interfaces of an MES system 115
Windows Terminal Server and Citrix solutions

These solutions are based on the strategy of combining the advantages of
the two solutions just mentioned. Normal applications are used (local cli-
ents) which are however run on special servers. The only thing now left
running on the local workstation computer is a special client which no
longer interprets the data and the application but only receives and displays
screen output data from the server and, in the other direction, sends user
inputs from, for example, keyboard and mouse to the server. This combi-
nation makes it possible for complex applications to be run on less power-
ful workstation computers. In addition, it delivers reductions in administra-
tive costs since the application only needs to be installed on the server.
Smart clients
Microsoft is currently publicizing its new development framework .NET.
With this development framework so-called smart clients can be created.
During the development process the developer specifies which parts will
run locally and which parts will run on the server, which means that the
applications appear to be a mixture of local client and thin client. Another
outstanding feature of smart clients is that no separate installation routines
are now required: instead, administering these systems is made easier by
software distribution by copy command.
5.3.2 User interfaces for configuration, monitoring

and reporting
In many cases the operating system Microsoft Windows in its current ver-
sion of Windows XP is used as a platform for the fields of configuration,
monitoring and reporting and is regarded as industrial standard. As regards
the technology for the user interface, all of the possibilities we have men-
tioned are candidates. If a correct selection of technology is to be made,
the benefits of the application should stand in the foreground. There is no
doubt that web solutions will suffice for information workstations and
simple controlling. On the other hand, even in the very near future, a local
client will be required by complex applications such as control stations,
planning modules or applications with special requirements regarding ef-
fective working.
The user interface of an MES should have the following important
properties:
Easy adaptability of the interface for customer-specific wishes by means

of, for example, user fields;
Powerful tools for creating customer-specific reports;
Powerful tool for creating complete customer-specific applications (ap-
plication designers);
As has already been explained previously, here too the correct combina-
tion of technology and application offers the best possible benefits for
the user.
5.3.3 User interfaces for data collection
Special requirements made of the user interface

In the area of data collection, in addition to the rapid and effective acquisi-
tion of data, displaying the actual situation stands in the foreground. As
part of the shift of responsibility in production towards the workers (group
work, for example) or due to attempts to make savings, reporting in the
area of data collection is however becoming more and more important.
This means that comparisons with the previous day or week are already
possible on the operational level. For the reasons we have mentioned,
Windows or Windows CE systems (CE for consumer electronics, systems
for smaller applications) is being used more often, even in the area of data
collection, since the presence of a graphical interface means that more
information can be displayed.
In addition, these operating systems form a good basis for networking in
the local network as well as permitting easy inclusion of printers. Good net-
working capability gives Windows-based systems decisive advantages in
the growing segment of WLAN interfacing. In this case the advantages of
“mobile data collection” and “online data access” can be combined together.
The data collection devices are operated manually via special keyboards
integrated in the housing or via touchscreens. In addition, the most varied
reading systems are used for bar codes, RFIDs or other identification vehi-
cles, including even biometric recognition.
One argument used in favor of Windows-based data collection systems
is that investment is protected as this equipment is supported by virtually
all MES systems. On the other hand, there is a large market for special
terminal solutions based on other operating systems which will principally
be used when requirements are simpler or when the costs of each data col-
lection device have to be kept low.
5.4 Outlook 117
Practical possibilities for different technologies in user

interfaces
The user interface technologies mentioned some time back find application
even in the data collection field. One of the most important requirements in
the field of data acquisition is off-line capability: should the server or the
network fail, the data collection devices should carry on working as inde-
pendently as possible depending on the application. This is why in most cases
local clients are used (so-called intelligent clients) which control the program
flow, recognize a communication failure and buffer the data locally.
Thin clients such as web-based solutions are becoming increasingly im-
portant in the field of data collection. Until now the lack of off-line capa-
bility in thin clients has greatly limited their use in this field. As WLAN
solutions become more popular, a higher failure tolerance and greater mo-
bility is achieved which means that even thin clients can be used in data
collection thereby making possible a reduction in administrative outlay.
One current trend is the use of Windows Terminal Server and of Citrix
solutions even in the field of data collection. If your network has a high
failure tolerance, here too the combined advantages of these technologies
can be exploited in production.
5.4 Outlook
Nothing is as constant as change. This saying is more than appropriate

even in the field of MES systems. On one side the technologies are chang-
ing. As can be deduced from what we have said above, the trend is going
clearly in the direction of cost reduction, economic efficiency and saving
administrative expenses. The readiness of users to invest in new technolo-
gies is no longer oriented by “featuritis” but unmistakably by a different
goal: that IT costs must be reduced.
On the other hand, similar demands are made of production in a modern
company. Process sequences must be changed quickly, processes must be
remapped rapidly and flexibly, maintenance times, downtimes and storage
times must be reduced.
Selecting the correct MES system is an important aid in reaching these
goals. If the MES system is oriented towards the technical requirements of
users, it will allow them to reduce overheads when they use it themselves.
But what is a lot more important is that the right MES system delivers
the necessary flexibility to allow the requirements of the user to be satis-
fied within a clear cost- and schedule-related framework. For this the MES
supplier provides an MES system and also trained personnel so it can be

adapted as optimally as possible to the needs of the user via
Parameterization
Customizing
Classic adaptation
The user’s own development work
The functions
Process mapping
Interfaces
User interfaces
We especially mention the simplicity factor with which the process
mapping can be adapted since changes in the life cycle of an MES system
cause the most costs here. Furthermore, the MES supplier should cover,
both technically and on the application side, as many as possible of the real
requirements of the user. If this is the case then nothing should now stand
in the way of a partner-like relationship between the right MES supplier
and the user, especially as these are likely to be medium- to long-term
relationships.
6 Integrated production management with MES
6.1 MES systems make production management possible
While workplaces in the office have been equipped with PCs for the last
twenty years we are now experiencing the systematic continuation of this
trend in the field of production. The production worker’s office desk
comes into existence at the information point in production.
In contrast to the way computers are used in management where the
emphasis is on word processing, spreadsheets and ERP systems, the pro-
duction worker uses programs tailored to production-related data handling.
The MES system is the information and data collection system for
manufacturing and production. The very latest status information about
orders, machines, tools, materials and personnel is brought together here
and prepared appropriately for the relevant applications. MRP controllers,
production schedulers, logisticians, production foremen and the workers
themselves use the online information from the MES system and can make
the right decisions for the particular situation when production processes
do not run as planned. Optimum production management was not possible
until the arrival of MES systems.
The ERP system looks at production through a telescope as it were. It
plans and recalculates production sequences on the basis of production
status messages from the MES system.
Process computers displaying visualizations are island solutions opti-
mally tailored to the process in question. From the point of view of pro-
duction management this is like looking through a microscope. The MES
system is the connecting link between the ERP level and the production
process. All of the data which allow production management to make the
best decisions are brought together here.
6.2 The MES model
MES systems compare acquired data against target requirements. This

means that MES functionality divides into a data acquisition functionality
and a functionality for monitoring these acquired data. The MES system is
120 6 Integrated production management with MES
deployed in a targeted manner and focuses on the data which are important
for the company in question. The present treatment can be divided into the
three central topics:
MES data analysis
The task of data analysis stands at the beginning of an MES project. In
many cases the typical MES data entry objects can be derived from the
user’s production process or the sector of industry. The result is a listing
of the data entry objects to serve as the basis for the database of the
MES system.
Data acquisition functionality
The second area of focus in MES requirements are those relating to an
optimally tuned data acquisition functionality. What degree of automa-
tion can be implemented in data acquisition? Which data will need to be
entered manually? At this point it is decided which data acquisition
functions can best be integrated into the existing production sequences.
Information display and preparation of analyses
MES users are interested in different MES data entry objects at different
times in different cumulations and differently aggregated presentations.
The MES system must offer information editing functions to every user
and pass collected information onwards via interfaces.
The relationships between data acquisition functionality and the analy-
ses are shown in the MES model. Data are registered at the data collection
terminal by means of the relevant acquisition functions for the data entry
objects in question and taking plausibility checks into consideration.
The MES system administers the data in a database which serves as
a data archive for the overviews and analyses.
The data acquisition functionality works in dependence on planning in-
puts relating to the corresponding reference variables – for example, re-
quirements for order and article. The personnel steer the data acquisition
dialogs, making use of selection lists or making manual inputs. Context-
sensitive plausibility checks are made here against the MES database.
In some cases the process interfaces with machine or weighing equip-
ment controllers are triggered by manual inputs. Current and objective data
are taken directly from the process and evaluated in order to obtain a de-
scription of production progress.
The decisive advantage which MES has over traditional data collection
systems such as written records (which are still used even now) is that the
time dimension in value generation can for the first time also be consid-
ered and registered. In the light of the fact that an overwhelming majority
of resources represent potentials which are used in a manner proportional
6.3 Data analysis: information in an MES system 121
Fig. 6.1. The MES model
to time, a mapped image of these dependencies becomes an important ba-

sis for decision-making.
6.3 Data analysis: information in an MES system
The modern data acquisition terminal is integrated into the corporate net-
work (intranet) and enjoys full access to those company datapools relevant
to production. The data acquisition client is therefore a powerful tool and,
since it communicates with the peripheral device which has been tailored
to its environment, is also a regular “factotum”. The central task of the
MES is to focus ergonomically on the major data objects and to handle the
data ergonomically.
Anyone planning to introduce an MES system must first be clear about
which data objects he is going to set his data acquisition up on.
The relevant data model used for the MES system will be guided by the
sector of industry and the production processes. Depending on the type of
use, other data entry objects will be of interest: the plant and equipment
manufacturer will be interested in time data and hardly at all in quantities
while the repetitive manufacturer regards process speed at the machine as
the essential factor. Quality inspections, on the other hand, will have equal
importance for both of these target groups.
Fig. 6.2. Selection of data entry objects
From the ERP system the MES system receives input requirements re-
garding the order and the resources scheduled for the production process.
These data are administered in corresponding inventory charts. The MES
system does however also have MES-specific configuration data which are
administered locally in the MES system. The MES system derives the re-
quirements applicable to the production processes from order inputs and
from the configurations.
Status signals from the production process are assigned to the MES data
entry objects. The data are compared with the target requirements and sup-
port production management. The MES system passes cumulative results
on to the ERP system.
Decisions as to how long data will remain in the MES system are made
for each data entry object as also regarding incorporation in the MES data
model, the origin of the master data, use and properties within the MES
system, and feedback to the ERP world.
6.4 Operating resources: machine or installation section
The central reference point of classic production data acquisition is the

machine, the machine group or the plant section. Defining the individual
work centers is process-dependent in the MES system and will therefore
only be oriented to a limited extent by the requirements of the ERP system.
With the MES system being based on a more finely implemented machine
6.4 Operating resources: machine or installation section 123
definition, a production line in MES will therefore in most cases be broken

down into individual machine groups since the process steps active there
form the basis for data acquisition.
The production speed, the quantities produced of good or poor quality,
and also the reasons for and durations of idle times are the main data
which are acquired at the machine.
6.4.1 Order/operation
An order originates in the ERP world and with its plan requirements de-
termines the targets for the production process. At the same time it serves
as a cost collector for recording services performed (times) and quantities
produced. For this reason the order represents the backbone of data acqui-
sition and is thus the classic data entry object.
Anyone in the field of data acquisition talking about the order in most
cases means the operation, the operating sequence or the activity. The op-
eration includes all information which according to the work plan relates to
the corresponding work center and to the process step within the order.
The work operation transports production information to the data acqui-
sition station. This data includes master data from the work plan (standard
speed, planned work center, planned set-up time, planned running time,
work instructions) and from the material master (bill of materials informa-
tion, required quantities, drawings) as well as the descriptive data for the
order (such as target date and target quantity, and possibly customer in-
formation, printed text for labels, and so on). The work operation also de-
termines resource requirements, which in production are assigned and
plausibility checked either implicitly or by manual inputs as an MES sig-
naling object.
At the same time the work operation receives information from the pro-
duction process about the progress of production and displays this at the
data acquisition station, transfers information into the MES database and
collects feedback data for the ERP system.
In addition to pure production orders, an MES also processes reworking
orders, project orders, overhead cost orders and inspection orders, which
may very well be handled differently within the data acquisition process.
6.4.2 Material
Data acquisition may relate not only to those materials which flow into the
production process but also to the material produced. In the case of incoming
materials, in most cases plausibility checks are carried out against the bill of
material. If a manufacturer is required to register and track on a batch basis,

he will need to identify the material batches in the production process at the
data acquisition client. Discrete quantitative consumption which is measured
at the work center also represents a material-related report which can be
passed on to materials management.
Manufactured materials are logged as yield, scrap and reworking quanti-
ties. For concatenated processes with charge-based data acquisition the
MES system generates unique batch or lot numbers for further tracking
purposes. Materials can be barred directly in production and in this case
cannot be used further until a decision is made about their future.
6.4.3 Resources and production tools
Resources which are required for carrying out the production process and
which are simultaneously only available in limited capacities are included
in the planning, are assigned and then taken up by the production process.
This includes the tool, specially trained personnel, such as the line engi-
neer or the quality representative, as also special handling devices or re-
quired items of equipment.
In many production environments the tool as a resource is even more
important than the machine. Tool-related maintenance is based on regis-
tering service times and quantities (work cycles). Recording the tool num-
ber will be an unavoidable requirement when several tools of the same
tool type are being used, such as is normal in large quantity production,
for example. On the other hand it will not be necessary if only the planned
tool is used.
Active resources are barred with respect to parallel scheduling and use
in other machines.
Machine programs or machine settings records are special resources
which the terminal transfers into the machine controller during the set-up
procedure. Monitoring release criteria and versions management are also
tasks the MES system must perform for these resources.
6.4.4 Process values
In the case of highly automated processes and in production environments

in which product quality is markedly dependent on individual process val-
ues, a central role is played by the recording and the permanent monitoring
of characteristic process values. Here MES data acquisition records the
relevant signals direct from the process (analog or digital), displays them
and saves them in the database, either on the basis of specified random
6.4 Operating resources: machine or installation section 125
sampling patterns or at defined intervals. In the case of batch-based pro-

duction there is frequently a need to save recorded process values in rela-
tion to the batches of material produced.
6.4.5 Personnel
The aim of data acquisition relating to operating personnel is to be able to

assign the work done to a cost unit such as, for example, the production
order, the maintenance or overhead costs order. Personnel-related mes-
sages in production are registered in an integrated MES system combined
with clocking-in and clocking-out data. This means that attendance times
can be compared with productive working times at the workplace. If per-
sonnel are working on the basis of performance-related remuneration mod-
els, the worker’s cost-center–related or order-related messages will form
the basis for calculating the corresponding time balances for the incentive
payment or piecework models held in the system.
Target/actual comparisons, such as current personnel overviews, for ex-
ample, are based on the personnel messages of the workers.
Identification of the individual plays a central role in the implementa-
tion of access control requirements. In this regard the MES system sup-
ports not only conventional card readers but also special data acquisition
techniques for checking biometric data, such as fingerprint readers or even
retina scanners. The job of the MES system is to manage the reference bit
pattern for each person for comparison purposes during the identification
process.
6.4.6 Inspection and testing characteristic
The inspection order tells a production process at what time or quantity-

related intervals individual characteristics of the material being used or
manufactured are to be subjected to inspection. The job of MES data ac-
quisition is to record the inspection results, to compare target values and
tolerances, and also to display characteristic curves, for example, in the
form of control charts, Pareto analyses or analyses from statistical process
control. What is particularly important here is one particular function of
some MES systems whereby irregularities or deviations from target re-
quirements are immediately displayed upon data input or measurement.
6.5 MES data acquisition functionality
From the DP point of view, the data acquisition functionality of an MES

system is an interface which has been shifted into the production environ-
ment. In most cases little attention is given to the importance of this inter-
face although a well-functioning data acquisition interface is of decisive
importance to the acceptance of the MES system.
The great variety of data entry objects and their automated identifica-
tion, the ergonomics of dialog control, plausibility checking of acquired
data, techniques of data acquisition are some of a wide range of aspects
which have to be taken into account when planning and implementing an
MES system if a reliable interface is to be obtained and the MES system
optimally fulfill its objectives.
One requirement which every company makes of data acquisition is that
data should be acquired in production without practically any additional
effort on the part of the worker. As utopian as this demand basically is, it
must nevertheless be consistently taken into account in equipping data
acquisition stations and in the design of data acquisition functions.
Data acquisition is heavily affected by a number of system requirements
which ensure good data quality:
Ergonomics. Efficient operator control on the part of the worker is
a necessary condition of success in implementing an MES system.
Plausibility and completeness of the data. Constant checking of con-
sistency results in a high level of process reliability. Plausibility and
completeness guarantee a high quality of data and are thus of decisive
importance to the benefits of data acquisition. In addition, the least pos-
sible reworking due to correction or cancellation of the acquired data is
ensured.
Operational reliability. The off-line capability of the data acquisition
program and the possibilities for buffering acquired data ensure the high
level of availability of an MES system.
The job of the data acquisition terminal is the provision of data acquisi-
tion dialogs for the worker for the purpose of controlling production se-
quences, data transportation of planning requirements for the data entry
object concerned (order, tool, material, personnel, and so on) in produc-
tion, and recording process parameters via the corresponding interfaces
with the process. Other tasks include the ergonomic presentation of infor-
mation at the terminal and also the operation of system peripherals, such
as, for example, printing accompanying documents or labels. Further sys-
tem functions support the assignment of unique identifications, for exam-
ple, for identifying material batches.
6.5 MES data acquisition functionality 127
6.5.1 Data acquisition terminal equipment
Ergonomics and security is achieved by the use of identity readers and by

data acquisition which uses as little paper as possible and is as automated
as much as possible. Local conditions in production, distances from the
reporting station, temperature fluctuations or a dirty environment are fac-
tors which determine what is the best equipment configuration at the data
acquisition stations.
A wide variety of technical equipment caters for the range of require-
ments of the most varied industries and the most varied manufacturing
processes. Ergonomic data acquisition by the MES system is supported by
terminals with touch screen operation, mobile data acquisition devices
with a wireless-LAN connection, electronic readers and scanners, scales
and machine or installation controllers which condense the data and pro-
vide the corresponding interfaces.
The type of data acquisition must be specified for each data entry object.
For example, an order can be selected from the work-center–related plan-
ning list, signaled via a bar code on the production document or assigned
manually. The MES must make all possibilities available and support an
individual configuration for each work center.
How the data acquisition terminals are equipped and which peripheral
devices are selected must be guided by the means of identification used for
the individual data entry objects.
Fig. 6.3. Definition of the data acquisition infrastructure

Stationary PC-based terminals with touch screen operation.

PC-based terminals make all possibilities available to the data acquisi-
tion application. Large displays and touch screen operation make ergo-
nomic operator control possible and are ideally suited to presenting in-
formation in written or graphical form. Selection lists can be clearly
presented in the data acquisition dialogs. Peripheral devices with corre-
sponding driver programs are universally available. Wireless-LAN con-
nections mean that PC-based terminals can be used flexibly.
Mobile terminals.
Wireless-LAN equipment permits deployment of mobile terminals which
combine local flexibility with online plausibility checks against the cur-
rent database. Selection of the terminal hardware and of the correspond-
ing operating system will need to be matched to the application in ques-
tion. Alongside PC-based terminal architectures, PDAs or even cell
phones are playing a greater role in mobile data acquisition. In most cases
mobile terminals are combined with the corresponding reader devices.
Contactless identification.
Under the buzzword of RFID (radio frequency identification), contact-
less cards for individuals, transponders for identification of materials in
the most varied shapes and designs, suitable for even the harshest pro-
duction environments, are delivering a new flexibility in the identifica-
tion of data entry objects. The flexible description of different segments
with different attributes is opening up new possibilities, such as, for ex-
ample, writing to different segments of the same RFID the different arti-
cle numbers of the customer and of the supplier.
Combined identification.
Combinations such as contactless personnel cards for access authoriza-
tion, the bar code on the same card used for logging onto the work cen-
ter data acquisition terminal, and the chip on the card for the canteen
charging system, mean that a central ID card can be used for communi-
cating with different applications. In the meantime glue-on labels have
also come onto the market which have an RFID transponder on the glue
side and at the same time have bar codes printed on the visible side.
Mobile reading devices are suitable for pure identification purposes
when they allow information to be acquired at the place where it origi-
nates. The batch label on bulky material can be scanned in its storage
location. The reader can be connected to a stationary terminal via a ra-
dio link or via a docking station.
Biometric data.
Identification of individuals in sensitive environments or as part of access
control can be effected by recording and comparing biometric data. In the
meantime fingerprint readers and even retina scanners have become
available at a reasonable price thereby rendering a wide use of these iden-
tification techniques no longer utopian. Particularly in the field of access
control it is necessary to be able to control door openers. In this case the
terminal supports the corresponding interfaces.
Printers and printed codes.
Bar codes and even matrix codes are easy to create and flexibly config-
urable. For this reason printing labels at the machine’s data acquisition
station has further gained in importance. Its use in production logistics,
for the identification of material batches or transportation containers
during reclassification or relocation procedures, has become necessary
in many sectors of industry due to statutory requirements and is gaining
more ground.
Alarm devices.
There is a necessity for an alarm facility in the production process di-
rectly at the data acquisition terminal. The events triggering an alarm are
not only displayed by the MES system but also take the form of acoustic
or visual alarms. Configurable alarm situations are communicated by the
MES system directly to the responsible persons by email, pager or cell
phone on the basis of specifiable escalation levels.
Web clients for data acquisition at remote locations.
Under the buzzword of the “extended workbench” more and more pro-
duction environments are working with decentralized production facili-
ties or external service providers. Transparency for production control
throughout the entire production process will not be possible unless the
external production processes are also included in data acquisition relat-
ing to production progress. In addition to being fitted out with identical
data acquisition equipment, modern MES systems offer the possibility
of data acquisition via a web client. Configurable data acquisition dia-
logs which can be accessed on virtually any PC with an internet connec-
tion permit data to be collected on an inter-company basis.
6.5.2 Information for the worker
As automated processes in production become more important the worker

needs more and more information. The right information at the right
place, comprehensive, fast and presented ergonomically – these are the
requirements which the MES system must meet when supplying informa-
tion in the production environment.
The data acquisition terminal displays the current information regarding
the status of all data entry objects, thereby creating transparency in the
workplace and ensuring process reliability. Examples of how this need for
information manifests itself are current status monitors for the state of the
machine and the production process, for the order, the operation and the
material batches being used, for the machine operator or the team, for
pending inspections and recent inspection results, for the machine program
currently loaded, for tool use and upcoming maintenance intervals for ma-
chine or production tools.
Since the data acquisition terminals are networked, there is practically
no limit to how master information can be presented: images of assembly
drawings or finished articles, work instructions in the form of video se-
quences as an assembly aid, the display of setting parameters from the
DNC programs by means of suitable viewers are only some examples of
the plethora of information which is made available to the worker. What is
of decisive importance is the up-to-dateness of the information presented
and, unlike printed documents, this can be guaranteed at all times. Evalua-
tion functions for the last shift, the utilization ratio of the previous week,
Fig. 6.4. Presentation of current information at the data acquisition terminal

consumption of materials during the current month, and so on, round off
the range of functions offered by the data acquisition terminal.
The personal motivation of the worker plays a decisive role in the opti-
mization of production processes. Information about personal needs and
personal targets are major factors. This includes the current time balance
of the employee, the current level of his incentive wages as well as his
success in reaching targets on the basis of the individual employee target
definition. These displays of information aimed at the individual are be-
coming more important, particularly with the arrival of manufacturing
scorecard methods (Kletti J, Brauckmann O, (2004)).
The MES system architecture provides tools which are used for the
preparation of information and for designing layouts for how the informa-
tion is to be presented. This means that all information functions can be
individually designed and via a log-in function can branch off into a per-
sonalized information pool for the employee.
6.5.3 Modularity supports the diversity

of data acquisition dialogs
Acceptance by employees is of decisive importance to success when an

MES is introduced. Most of the employees in a company will be working
with the data acquisition terminal. For this reason, decisive potentials with
regard to system ergonomics may be found in its design and dialog control.
Modern MES system architectures support a flexible adaptability of the
data acquisition functions to the data acquisition process. To make it pos-
sible for the standard system to be customized to the individual process,
the system architecture itself must provide the necessary capabilities.
It must provide modularity and adaptability of the data acquisition dia-
logs to the individual work center. Very, very few companies have a ho-
mogeneous production structure and the homogeneous data acquisition
structure this implies. Injection molders together with their tool making
departments thus bring to an MES system the requirements not only of
a repetitive manufacturer but also those of the one piece make-to-order
manufacturer. With such a production environment it must be possible to
design data acquisition dialogs individually for each work center.
Configurability with regard to the operator (for example, an option al-
lowing foreign workers to select a language) represents one more demand
on the flexibility of dialog design.
The wide variety of configuration settings in an MES system, the possi-
bilities for customizing the data acquisition functions, and the individual
design of dialogs for each work center, all of these require a modular sys-
tem architecture.
Integration of the data acquisition interfaces into the dialogs must be
configurable by, for example, specifying that the “personnel number” field
can only be occupied by the LEGIC identification number or that a quan-
tity status report field can only be filled out from the weighing device
controller.
6.5.4 Plausibility in the data acquisition process
The MES system will secure a good quality of data when a plausibility
check can be carried out on the data directly during the data acquisition
process. Depending on the data entry object in question, the most varied
tests can be defined in the MES system. Static checks will be concerned
with the master data or set-point data (for example “the actual quantity
must not exceed the set-point quantity”) while dynamic checks relate to the
course of the production process (for example “with overlapping produc-
tion the quantity produced in an operation must not exceed that of the pre-
vious operation”).
With manual dialog control, infringements of plausibility, such as ex-
ceeding quantity levels, can be displayed to the production personnel di-
rectly. This allows the worker to react to the infringement by correcting his
mistake and inputting the correct quantity. In this way the need for off-line
corrections can be largely prevented.
On the other hand, plausibility checks in communications with machine
controllers are a problem which can scarcely be solved in the dialog. The
interface between process and data acquisition client must deal with this
violation by means of a suitable exceptions handling routine and without
impairing data quality or integrity.
In many cases checks only make sense in certain parts of a company
while in others they are utterly useless. For this reason modern MES sys-
tems support dialog-oriented plausibility checks which by means of cus-
tomized settings can be activated or deactivated for different production
areas (cost centers, work centers, machine groups) or for different types
of order.
One important requirement is checking the status of all data entry ob-
jects by means of plausibility checks on the part of the MES system,
thereby securing an integral process reliability. For example, should a lab
check on material give a negative result, the material in question will be
immediately marked as barred. This online status check in the data acqui-
sition dialog before any use is made of materials ensures that material just
rejected in the MES system can no longer be reported as available for

production.
6.5.5 Which interfaces with the process are best used?
On the data acquisition level modern MES systems support interfacing

possibilities which can be used universally. In many cases the machine
park to be interfaced with consists of a mixture of old and new machines
whose controllers provide different methods of communication. The
modular nature and the configuration options offered by the MES play
a major role in process interfacing in particular.
Clock signal and operational signal acquisition
Simple acquisition of clock or operational signals via digital I/O or
counter inputs still represents an important basis for MDC data acquisi-
tion in automated production processes. The large amount of older pro-
duction machines will in particular continue to determine even the fu-
ture use of this universally applicable and effective method of machine
interfacing.
Machine control protocols
A more complicated method is to communicate with the machine con-
troller directly. This enables the data acquisition terminal on the one
hand to transfer data directly into the controller (such as a machine pro-
gram for machining a particular article) and on the other hand to receive
data from the controller about production progress or about machine idle
times which have occurred, or to receive any process values desired. In
communication the terminal must respond to the controller version and
the protocol being used.
Weighing devices
Weighing device interfaces are important aids in automated data acqui-
sition. In most cases the impetus for recording a weighing result comes
from a user dialog. Data transfer from the weighing device controller to
the data acquisition terminal – a potential source of error with human in-
tervention – is automated and protected. The same general constraints
apply to communication with the weighing device controller as to the
machine controller interface.
Process communication by OPC
Data transfer by OPC (object linking and embedding for process con-
trol) is used for direct communication with the machine or installation
controller. The OPC technology provides a standard protocol which
supports data transfer between the controller and external communica-
tion partners irrespective of the equipment manufacturers. MDE signals

from the machine, such as counters, clock cycles, status or process val-
ues, are just as feasible as data transfer into the controller. This type of
communication is not possible without support from an OPC server via
the machine or installation controller. In this method the data acquisition
program communicates via an OPC client with a specified address space
in the machine controller. This means that the data acquisition program
can on the one hand access via defined OPC variables all information
held in this address space and on the other hand describe data fields in
this address space. The task of the OPC client is to make a logical con-
nection between the application programs and the OPC variables.
One advantage of OPC communication is that it is independent of pro-
tocol and controller versions. It does, however, have the disadvantage
that communication via the LAN, which is used frequently, calls for
high network availability.
Special protocols
In some branches of industry special protocols have gained acceptance
whose inclusion the MES must support, provided this has already been
made possible on the machine side. One example of this kind of stan-
dardization is Euromap protocol E63 for injection-molding machines
from all leading machine manufacturers.
6.5.6 Data correction in the MES system
All data which are acquired by the MES system must also be modifiable in
the MES system. This requirement relates not only to data which were
manually input but also to data obtained from process interfaces.
This modification functionality must be backed up by the corresponding
authorization checks and when the function is used this must be logged in
the MES system.
In the event of a correction the MES system must take into account all
interdependencies between the data entry objects. For example, correction
of a quantity entry will affect all relevant data entry objects, for example,
machine, order and personnel. When corrections are made, all interfaces
with higher-level systems must be supplied with the corresponding cancel-
lation records.
6.5.7 Availability and reliability of the MES system
An MES system secures the system availability of the information system

for production and thus offers an additional possibility of securing against
6.6 MES information for production management 135
failure of the ERP system. Practical experience has shown that over
a period of several hours of failures on the ERP level, the store of orders
held in the MES system enabled production to keep going and this meant
that it was possible to avoid major economic losses.
The MES system itself has safety mechanisms which can bridge over
a failure of the corporate network. The data acquisition terminal caches
data when there is no connection to the MES server. In the event of the
LAN going down, plausibility checks at the data entry object against the
locally available data pools are possible.
Even with redundancy built into the system, power outages, database
failure or system hardware faults can result in total failure of MES data
acquisition. Should this occur, the organization goes into emergency mode.
For this eventuality the MES system provides a functionality whereby data
can be efficiently input later on.
6.6 MES information for production management
Good and objective decisions can be made without having reliable infor-
mation at your disposal. With the MES system the very latest information
about the manufacturing environment is guaranteed available at all times
at the work centers of MES users. This information includes displays of
the online status of the order, the machine, the process, the tool, the mate-
rial currently being used and produced, as well as the quality and the
personnel.
The MES system provides each target group with objective information
based on different time scales. For example, for a particular order or article
the MES receives different information under different time aspects: plan-
ning lists for the next shift, operations in progress at the work centers of
the machine park, orders completed the previous day, or displays of actual
times required in comparison with the specified times for all orders for
a special article in the previous three months.
The worker at the machine is however interested in different informa-
tion being displayed than the production manager is. For this reason all
data acquired can be cumulated on the basis of different time bases or by
departments and graphically prepared. It is important to the machine op-
erator that all machine states recorded are available for individual analysis
for group meetings in the same way as utilization analyses serve as a basis
for the department supervisor’s reporting to the production manager, and
the plant OEE figures (OEE = overall equipment efficiency) enable man-
agement at corporate headquarters make an objective comparison of dif-
ferent plants.
Fig. 6.5. Information displays for MES users
6.6.1 Transparency due to MES actuality
The MES system creates transparency by displaying online information

about the current situation in production. Permanent status information and
the target/actual comparisons based on this for all data entry objects:
Current status overviews of the order, operation, machine and machine
group, tool and tool component, production personnel, consumables and
feedstock batches, machine programs being used, dynamic process data
and current inspection results.
The use of this online information yields potential benefits in production
planning and control. By providing a comprehensive pool of information
the MES system helps the production scheduler make the right decision
when rescheduling is necessary by displaying directly the corresponding
effects on competing requirements.
Permanent status adjustments in the MES system result in updated dis-
plays for all data entry objects:
Order overviews with current target/actual comparisons
Machine status overviews showing the current status
Changes in material stocks
Personnel status overviews and updated short-term manpower planning
Updated tooling lists
Tool requirement lists
Updated lists of maintenance activities pending for each resource
6.6 MES information for production management 137
Fig. 6.6. Current machine status and scheduled operations
Alarm situations arising from critical changes in production can be dis-

played by the alarm management function of the MES system and sent by
email or cell phone directly to the persons responsible. By means of esca-
lation levels a workflow is generated in the MES system which results in
critical situations being dealt with in an orderly manner.
6.6.2 User-focused analyses
In the MES system analyses can be produced for all data entry objects and
over any period of time. Analyses are made available at all data entry objects
in the MES system. The following examples will provide just a small sample:
Article, order and operation profiles
Analyses of transportation, queuing and storage times within production
Display of overhead cost balances from registration of all secondary
processing times
Idle-time analyses for machines and installations over any time period
Comparisons of productivity indices
Personnel information relating to completed activities
Incentive wage curves for individuals or incentive payment groups
Actual-value graphs for process values
Traceability analyses for material and batch tracking in production
SPC analyses of defined quality characteristics and scrap analyses
Tool histories showing service lives
Fig. 6.7. Machine time analysis
Powerful MES systems will even supply the available analyses to a web
client. The MES system can thus be used globally as a tool: the production
manager can also view at an outside location all relevant information for
his field of responsibility and he can directly compare key data across dif-
ferent companies. Manufacturing companies whose structure is changing
due to globalization and relocation of production facilities will profit from
being able to make inter-plant trend comparisons on the basis of data from
the MES systems in those individual locations.
After a configurable time interval of several months the MES system
will normally delete all transaction data from the active datasets. Acquired
information to be held in long-term data storage in the MES system is
combined and transferred into archive tables. Analyses of these archive
data can also be included in current analyses by means of the correspond-
ing switches.
6.6.3 Production-related target definition
In its analyses the MES system does not present static data but rather
shows temporal changes and current values in the form of a trend curve.
For specified operational target agreements the MES system displays
Literature 139
Fig. 6.8. The manufacturing scorecard of the HYDRA MES system
intermediate results occurring along the road to the target and thus the
degree to which the target has so far been attained.
The MES system can be used for formulating operational target agree-
ments. The data entry objects and logical linkages between them form the
basis for this. Examples include the specification of target values for ma-
chine idle-time minimization, for scrap rates, or the formulation of utiliza-
tion rates which must be reached within a specified time.
Operational target agreements can be broken down by any type of or-
ganizational unit. Requirements may be laid down for the plant, the cost
center or the work center, the incentive payments group or the individual
employees.
The target is published and the actual values on the road to hitting the
target are systematically tracked. Everyone involved in this innovation
process can read off from the MES information displays how far targets
are currently being met. Personal target displays and their attainment rates
are integrated into the employee information display.
The MES system provides sustained support for the organization since
long-term employee motivation is guaranteed by the target values specified.
Literature
Kletti J, Brauckmann O (2004) Manufacturing Scorecard. Gabler, Wiesbaden
7 Detailed planning and control with MES
7.1 Overview and goals

7.1.1 Incorporation of detailed planning and control
In a manufacturing company the actual production planning is integrated

in the general framework imposed by the industry in question and by cor-
porate policy. Commencing with the strategic alignment of a company and
the sales planning deriving from this we obtain the general framework for
production planning. Investment and growth planning will also be part of
this strategic planning in order to provide the necessary production capaci-
ties for the production processes.
This brief introduction should make clear that demands relating to the
temporal validity and precision of a plan and also the planning problems
bound up with it will differ very greatly depending on the level (rough or
detailed planning) and the point of view (operations planning and schedul-
ing/production control) of the target group in question.
As regards production planning, here too the goal- and need-oriented
approach of a multi-level production planning system has proved itself to
be a good basis for an integrated production management.
To enable a better understanding of the terminology and of the detailed
planning in MES systems (this will be examined in detail below) an over-
view is provided of the different planning levels:
1. Tactical planning (sales planning)

Definition of general constraints such as planned investments or even
growth targets.
Specification of basic data such as the shop calendar and of production

targets derived from this such as, for example, minimization of warehouse
stock.
Time frame Æ long-range, strategic planning

Validity Æ annual; if necessary, quarterly review
WHO Æ management/top management
142 7 Detailed planning and control with MES
2. Rough production planning

Æ Long-range/medium-range
Implementation of strategic planning in primary requirements taking con-
crete requirements into account (purchase orders/release orders). As part of
material requirements planning, ways of meeting incoming primary re-
quirements are determined as are the secondary requirements deriving
from the bill-of-material explosion.
In the case of in-house production, the result is concrete production or-
ders and thus the requirements to be planned into the production planning.
Depending on the vertical integration or the complexity of the operation
sheets the individual production orders will in some cases be linked together
into order networks in order to map production-relevant dependencies.
A rough schedule will be drawn up in the ERP/PPS system which takes
into account the earliest starting date and the latest finishing date (delivery
date less a safety margin).
Sometimes this rough scheduling involves so-called capacity leveling in
which a rough comparative check is made as to the feasibility of the result-
ing production orders. For this check the performance of production, for
example, is expressed in quantities of material per unit of time and in
many cases only the final fabrication stages are taken into consideration
here.
At this point it must be clearly pointed out that this check can only be
made against an assumed, abstract capacity and without taking technical
circumstances into account. This means its informative content should be
assessed correspondingly.
This much too approximate estimate brings with it the risk not only of
setting unrealistic target dates or even making unrealistic promises to the
customers but also of the orders on hand being planned unrealistically for
production. The orders on hand can be arranged more realistically for pro-
duction with the aid of correspondingly thought-through concepts for op-
timizing rough planning in a company.
Unfortunately what is still seen in practice, even now, is that in many
ERP/PPS implementations only lead-time scheduling is carried out. This is
done on the basis of infinite capacity, which means that the feasibility de-
cision is made in the heads of those familiar with the process or even left
for production to make.
3. Detailed planning
From the roughly scheduled production orders come the corresponding
capacity requirements for the resources needed. Here a distinction is drawn
between the primary resources (machines/installations) and the secondary
resources (personnel, tools, and so on).
7.1 Overview and goals 143
As part of detailed planning, the roughly scheduled production orders,

which are competing with each other, are assigned to the capacities avail-
able. This type of loading means that realistic statements can be made re-
garding target dates and the loading situation.
Orders which have been firmed up as part of detailed planning are then
passed on to production for execution. Status reports from production are
fed back into the detailed planning, thereby allowing permanent compari-
son of the plan with what is really happening. Since the reality will deviate
from the plan with a probability approaching certainty, detailed planning
must respond to deviations of this kind.
7.1.2 Tasks of detailed planning and control
As part of detailed planning, roughly scheduled orders or operations will

be assigned to the resources currently available, this being done on the
departmental or group level – depending on the organization.
Unlike rough planning on the ERP/PPS level, production, which is the
implementing body, finds itself faced with the current reality. This reality
manifests itself for example in:
Technical problems in the production facilities (machine idle time, tools
breaking, and so on)
Problems in processing the material being used
New priorities in the production program or due to customer input
Employees absent due to illness, or
Even very indirect factors such as environmental influences, for example
As this list should make clear, there is no doubt that in real production
numerous things occur which will result in deviations from the “planning”.
This in turn makes it necessary to be making decisions almost on a perma-
nent basis about suitable measures to take.
The type of problem the production controller must deal with essentially
depends on the production sector in question, on the logistical situation
and also on the vertical integration. The two examples which follow
should bring this home.
With high vertical integration a two-step procedure is possible whereby
operations are assigned on a central level to production islands or groups
and the final decision regarding the resources to be selected and the spe-
cific sequence of production is delegated to the group.
In areas with high time pressure and short order lead times, such as is
the case with automotive suppliers, planning based on strategic considera-
tions is virtually impossible since the time between receipt of the order and
its execution offers only minimal room for maneuver. A time-intensive and
strategic approach to planning would here be out of all proportion to the
results which could be achieved, which in most cases would only be valid
for a short time anyway. To sum up, the core tasks of detailed planning
and control in an integrated production environment are as follows:
Resource allocation;
Flow control;
Resolution of conflicts;
Balancing against rough planning.
7.2 Use of MES for detailed planning and control

7.2.1 Overview
From the point of view of an MES, detailed planning or, put more pre-
cisely, technical resource allocation and feedback from the progress of the
real events is to be considered only as a unit. Whilst in conventional plan-
ning systems such as, for example, ERP/PPS systems, this control loop is
mostly used in replanning, in current MES systems the planned world
melds with the reality in the actual situation.
The core task of detailed planning is to bring the capacity-oriented orders
on hand out of rough planning and into a technology-oriented allocation of
available resources. Where capacity orientation in an ERP/PPS and tech-
nology orientation in an MES differ can be very nicely illustrated by the
example of an injection-molding production facility which frequently has
a large number of machines of the same or at least of comparable types.
Assuming that ten technically equivalent injection-molding machines
are available to the planning department and work is in two 8-hour shifts.
This means that rough planning has at its disposal a capacity of 320 hours
per day. Differentiating the individual machines at this point – in other
words, for rough planning in the ERP/PPS system – is irrelevant.
But it will be of consuming interest to production and thus, for example,
to the shift foreman and ultimately to the machine operator to know on
which of the machines an order will now actually be produced. What
makes things more difficult is that when the ten machines are examined
more closely they do differ in detail, even if this is solely to do with their
current tooling states. For example, in this case only two of the machines
have a certain additional unit which is required for manufacturing a small
number of particular products. It may also be the case that only some of
the machines – and then only in combination with particular molds – have
7.2 Use of MES for detailed planning and control 145
been released for use for reasons of quality or for reasons associated with
the customer.
In the case of investment-intensive installations and frequently when
processes are technically complex, rough planning already mostly deals
with individual physical capacities and thereby removes the need for ca-
pacity selection in the MES. In such cases the emphasis is frequently on
sequence planning which takes into consideration the capacity of secon-
dary resources.
The key requirements identified during rough planning are passed on by
rough planning with the orders on hand as restrictions for detailed plan-
ning. Essentially these are the following:
Earliest possible order start data
Latest possible order finish date
Order quantity
How the order is now executed within the specified limits is of no inter-
est to the ERP/PPS level and is the responsibility of production itself. The
buffer or the degrees of freedom deriving from the buffer can be used as
part of detailed planning. It thus becomes clear that the handling capabili-
ties of detailed planning are basically determined by the specified con-
straints. However, it is precisely in the extreme case with tight constraints
Fig. 7.1. Capacity pool vs. individual capacity

(for example, very tight target dates) that detailed planning in the MES
system makes its presence felt on account of its closeness to the technol-
ogy and the way the actual situation is reported back in real time.
Skillful sequencing thus allows massive reductions in set-up times or
even prevents them, thereby making up for bottlenecks elsewhere. On the
other hand, times required for transporting or converting supplementary
modules or tools can be optimized provided their allocation is mapped as
part of detailed planning, taking into consideration the real capacity, the
locations where they are currently stored or installed, and also, if applica-
ble, scheduled activities such as maintenance.
Alongside the constraints arising from the rough planning, useful de-
tailed planning in the MES and execution of the corresponding tasks to be
performed here calls for additional structures which in most cases have
a technological background. These will be examined in the following sec-
tions and the need for them clarified.
7.2.2 Dealing with primary capacities in MES
One essential basic item of information is the definition of the primary

capacities in the MES system. These derive from the machines or general
work centers which cover the primary requirements of the operations.
These requirements are handed over as such with the production order or
the operations it contains.
The capacity available in the MES reflects the realistic capacity avail-
able to production for carrying out its tasks. The capacity available in the
ERP/PPS on the other hand is primarily used for rough planning and a first
feasibility check and is thus usually only a subset of the performance
which is possible in practice. This is necessary for several reasons. First,
there must be a certain safety margin for unforeseen failures. Furthermore,
for rough planning no distinction is drawn between individual machine
groups or even product versions; instead, an average requirement (product
mix) is assumed. This fact too must be taken into consideration when plan
capacity is defined for rough planning.
When systems are introduced, in their enthusiasm the central master
data administrators even talk frequently about automatically transferring
the primary capacities (work centers) and the time capacity available from
the ERP/PPS into the MES. But as has already been explained in a previ-
ous section, implementations frequently differ on account of the particular
contexts of the systems or the application cases. For example, the one-off,
short-term introduction of an extra shift in the MES does not result in the
plan capacity being adapted nor even to a change in the plant calendar in
the ERP/PPS. Differentiation also becomes very clear in the example of
specification of primary capacities. In this case, multiple physical individ-

ual capacities or machines are frequently brought together on the ERP/PPS
side into a pool or capacity group. In some cases the capacities are even
defined simply by mapping the cost centers.
For all types of work centers, temporal serviceability is recorded in the
form of a time model or even a shift calendar. Since in the MES even very
short-term changes have to be made to this model (a special shift, for ex-
ample), the design of this model must be made as flexible as possible in
the MES. Since it is entirely normal to make such changes and, unlike the
working time calendars in the ERP/PPS, this is not done as part of the mas-
ter data revision service, it must be possible to make these changes simply
and intuitively, as the following example shows.
In order to be able to take special circumstances into account, different
kinds of work centers are distinguished in the MES:
1. Individual/machine capacity
This is the typical type of a machine capacity which has to be allocated
exclusively and which is basically defined by the time availability indi-
cated. The availability can also be influenced by a general utilization or
performance level so as to, for example, classify machines in a group which
have lower performance but which can be used as technically equivalent.
Lead times are calculated exclusively on the basis of parameters which
derive from the pair of work center and operation.
Fig. 7.2. Shift model taking MES HYDRA as an example

Examples:
Injection-molding machine
Screw press
Stamping press
Welding robot
2. Group capacity
Distinguishing it from the individual work centers just mentioned, with
this kind of work center, alongside the primary capacity derived from the
recorded availability of the work center itself, the specific availabilities of
additional required resources are most important.
The ultimate restrictions or loading bottlenecks mostly arise from the
labor capacity available or quite generally from the secondary resources
and production tools required. With work centers of this kind the running
time of operations is frequently guided by the type or number of resources
used while the work center itself remains in the background. This becomes
clear when labor-intensive processing steps are considered.
Examples:
Assembly facilities
Manual work centers
3. Machine capacity with second dimension (ovens, electroplating baths,

and so on)
This group of capacities is to be understood as a special variant of machine
capacities which is determined by another dimension in addition to time
availability. This dimension might be, for example, the volumetric capac-
ity of an electroplating bath or of an annealing furnace.
By means of suitable combinations of different orders, loading plans are
obtained, and from these the running times of the individual operations. Of
course, finding these combinations is guided by clearly formulated ruless
which are derived from technological parameters. This means that anneal-
ing programs or temperature curves, for example, must be observed under
all circumstances. In many cases, however, even the work carriers (which
must, for example, be acid-resistant) may themselves represent a bottle-
neck, which in turn can be reproduced by means of suitable mapping as
secondary resources or production tools.
Examples:
Electroplating baths
Annealing furnaces
Painting lines
4. Machining centers
The machining center represents a special challenge to system-supported
load planning. Here it is assumed that at a particular point in time precisely
one workpiece is being machined and thus one operation involved, but that
work pieces can be supplied in parallel. By suitably combining several opera-
tions and using the corresponding tools the aim can be pursued of keeping the
spindles running as continuously as possible. A closer consideration of the
degrees of freedom and the constraints which apply makes the scale of the
task clear. Accordingly the combinations of operations should be checked by
means of suitable technical parameters such as, for example, the NC pro-
gram, and the individual machining times for a workpiece leveled against the
loading times. Furthermore, several of these machining centers are usually
looked after by one employee which means that one loading must suffice for
a specific time without any other person being involved. In addition to the
actual machining centers, the various tools will also have to be considered.
These are often supplied from automated tool feeders which sometimes look
after several installations. This results in an additional restriction.
Further to the actual load planning, a suitable running time calculation
for the various operations must be carried out for this machining center.
With this calculation it must be remembered that the operations, although
they are active in parallel in the installation, are still processed sequen-
tially. This means that the machine combination, the tool-changing time,
the pallet capacity and the frequency of repetition will have an effect on
the running time of the individual operations.
Example:
CNC pallet machines
7.2.3 Modeling the processes in the MES
Process-capable mapping of production sequences starts with the quality of

the master data and their closeness to the process. This is because on this
basis calculations are made, prices are obtained and ultimately the re-
quirements defined for implementation in actual production.
Thanks to the growing capabilities of PPS systems and in particular the
increasing number of methods of mapping the processes in the master data
managed in these systems, such as operation sheets and bills of material,
the above-mentioned approach is actually being implemented in a large
number of industrial fields of production.
Let us also assume that this approach is recognized as effective and ef-
forts are thus made to generate high-quality master data. Furthermore, out
of this awareness comes the recognition that practical experience from the
processes should be permanently analyzed and should almost inevitably be

used for the permanent optimization of the input requirements and thus of
the master data as well.
In this way the production orders sent from rough planning for imple-
mentation in detailed planning will reflect the reasoning and the know-how
behind the input requirements and master data on the basis of which they
were generated. This results in the desire or rather the necessity of taking
this information into account or even enforcing its use as part of imple-
mentation in production and thus in the MES.
To show how necessary this is, we may mention here the operations in-
volved in assembling large machines such as construction machinery. The
order size is very low since we are concerned with complex, large ma-
chines manufactured customer-specifically. The individual construction
machines are built in different, sequential assembly steps on the basis of
the individual components and after a certain stage in assembly are re-
garded as individualized products.
In order that the individual components can be manufactured on a coor-
dinated basis and the effects of the individual steps can be taken into ac-
count even in the planning, the upstream production orders (components)
need to be grouped together like a subassembly and treated correspond-
ingly in the MES.
To return to the example of assembly which upon closer examination
appears in the order network “only” as an individual component. Within
Fig. 7.3. Subassembly-based manufacturing/assembly

this individual assembly order, the sequence, in the sense of a predeces-

sor/successor relationship, must be complied with. To ensure the flexibility
of the individual work steps, it is however important that this sequence be
factored in for every individualized separate machine. This is often abso-
lutely essential in the assembly of large machines on sole account of space
requirements and the intermediate storage capacity available.
Once an individual machine is in itself finished, various downstream
work steps follow, such as, for example, different checking and inspection
procedures, test runs or other commonplace aspects such as furnishing
with documentation and other supplementary equipment.
These work steps will no longer be subject to a strict sequence but can
be carried out in any order – once again with respect to individual ma-
chines. Since these are certainly time-intensive activities which also re-
quire correspondingly restrictive capacities such as a test rig, for example,
very detailed planning will be necessary and thus a correspondingly finely
subdivided routing plan.
The extremely complex processes occurring in the reality of this exam-
ple have certainly been greatly simplified but it does very nicely demon-
strate a large number of different relationships which absolutely have to be
included in the detailed planning and execution of production if the proc-
esses are to be reproduced in reality. Similar scenarios can be set up for
any processes or sequences and will thus come up against numerous rela-
tionships which are indispensable to an adequate image within the context
of master data modeling or MES detailed planning.
In order to be able to attain sufficiently precise and realistic modeling
of the processes, modern ERP/PPS systems – and thus MES systems as
well – basically map the following routing plan structures:
Orders of different order types;
Operations for mapping technology-oriented work steps or process steps;
Operation splits in order to make use of parallel production possibilities,
such as installations of the same type, with the aim of reducing lead times;
Single-part analysis (serialization or individualization) for examining
the individual process steps with respect to each individual part;
Order networks for networking several orders together and thus, for
example, for mapping projects or a typical assembly of a subassembly;
Variable relationships between individual or even several work steps
(operations) in an order to map for example:
Strict predecessor/successor relationships;
Exact synchronization of a parallelism in order, for example, to
schedule a first-off inspection exactly related to the production opera-
tion producing it.
Mapping of subnetworks within orders in order to be able to parallelize

them and if necessary reconverge them later.
Support for overlapping in different versions:
CAN overlapping
Overlappings of this kind are not included initially but can be imple-
mented if there is a need to reduce lead times.
SHOULD overlapping
Here overlapping is assumed as early as scheduling and even detailed
planning – in other words, it is used for reducing the process duration.
If for specific reasons overlapping in production is not possible, this
is also permitted.
MUST overlapping
In the event of a defined MUST overlap, this must be complied with
for process-related reasons and must accordingly be complied with
during detailed planning and a plausibility check carried out as part of
the implementation which follows.
7.2.4 Personnel: the especially valuable resource
With the increasing complexity of production processes and the growing

importance of the employee in manufacturing companies, the influence of
personnel availability on production planning and conversely that of pro-
duction planning on personnel organization is becoming greater.
In many companies, production planning which does not take the shift
plan into account has become inconceivable. In most cases today this is still
done with the help of manually drawn-up lists or the unspeakable Excel
lists which many companies find virtually indispensable. This state of
things is difficult to understand in the light of the functionalities offered by
current and integrated MES systems, and workforce attendance and ab-
sence planning together with up-to-date attendance time recording are some
of the basic disciplines which will be examined in detail in this chapter.
7.2.5 Modeling technological aspects
Alongside the relationships which arise from the bills of material and op-
eration sheets, the process is determined by numerous technical parame-
ters, especially those close to the process. The more detailed the considera-
tion given to the influences on the processes the more realistic a plan will
be and the more likely it will be implemented.
Technological parameters of this kind might be, for example, possible
combinations of different resources in order to manufacture a particular
article, such as combinations of machine and tool. Restrictions of this kind

arise for technical or even for quality-related reasons. This means that in the
first case one particular tool for manufacturing a product can only be used in
certain installations. In the other case – irrespective of the purely technical
possibility – a specific combination does not deliver satisfactory quality or
quite simply the combination has not yet been approved by QA or the cus-
tomer. This simple example can be applied freely to other resources such as
inspection, measuring and test equipment, NC programs and even personnel,
and a large number of application cases can therefore be found in practice.
Mapping an image of these circumstances means that the possibilities
for covering the needs arising from the orders or operations can be speci-
fied more precisely within the context of detailed planning. Possibilities
for time variation on the possible capacities emerge from the relationships
(described further above) within the orders or between orders.
Furthermore, the sequence in place on a capacity-holder yields further
indications which, within the context of detailed planning, will be of inter-
est to a final decision regarding capacity loading. For the sake of simplicity
let us take a machine to which the same kind of operations from different
orders are to be assigned. Here not only are the time restrictions arising
from the orders important but also the sequence itself since this could help
prevent what might be enormous set-up times. Looked at differently,
a sequence which must be complied with for reasons of scheduling can
result in unnecessary conversion or setting-up costs which were not in-
cluded as such in the purely product-oriented operation sheets and thus not
in cost estimating either.
Fig. 7.4. Modeling technological relationships

Fig. 7.5. Static vs. dynamic set-up times
To allow times of this kind to be included in detailed planning, MES

systems provide the corresponding structures, such as, for example, the so-
called tool set-up matrix.
Beyond the aforementioned and fairly discrete parameters, there is still
a large number of technological parameters which are unfortunately only
to be found inside the heads of those familiar with the process, such as, for
example, the operations planner and scheduler or the machine operator. To
be able to exploit this immense potential systematically, objectively and in
a way which is not dependent on particular individuals, a few MES sys-
tems already offer more advanced ways of modeling expert knowledge or
even experiences and utilization as part of MES detailed planning.
7.2.6 Strategies for resource allocation
The primary task of detailed planning is to prepare a plan for executing the
orders emerging from rough planning using the capacities which are avail-
able and taking technical constraints into consideration. A plan of this kind
is produced by allocating the various resources – this is why the corre-
sponding planning activity is also known as resource allocation.
Depending on the individual industry, the manufacturing environment,
the time situation and the desired flexibility within the context of detailed
planning we obtain the preliminary lead time during which resource allo-
cation takes place before actual execution in production itself. The MES
Fig. 7.6. Detailed-planning time spans in an MES
system provides different ways of displaying the time situation. Different

time ranges or even time horizons are available which can be flexibly ad-
justed and the detailed planning be thus adapted to the specific require-
ments of the company.
To help users in their tasks, MES systems allow them, as part of detailed
planning, to have resource allocations drawn up automatically. Taking into
consideration the horizons which have been defined and the numerous
relationships and restrictions we described previously, the orders on hand
are planned in on the basis of what capacities are available.
A distinction is usually drawn here between replanning and delta plan-
ning. In replanning, First all allocations already made are cancelled and
then the entire group of orders is planned afresh. Delta planning, on the
other hand, attempts to work changes in the orders into an existing alloca-
tion plan.
Stipulating the allocation for a specific time span (the so-called planning
time fence), and thus keeping it binding on production, can be done with
the fixing allocations function which can be automated or be carried out
via manual interaction.
Within MES detailed planning, various planning strategies are available
for supporting different objectives, with some of these objectives being
typical of particular branches of industry. These objectives include, for
example, optimization of set-up times, reduction of lead times, minimiza-
tion of work in progress inventories, and observance of deadlines.
The table below provides an overview of typical problem-solving ap-
proaches and where they are used or what they aim at.
Fig. 7.7. Classification of some standard heuristics
Due to the fact that different technical facts are taken into consideration
in the MES detailed planning, the likelihood of a resource allocation thus
made actually happening is very high and can also be continuously im-
proved by optimizing and giving the parameters a higher level of detail.
For example, restrictions due to absence of machine authorizations, to
currently barred tools or to vacation situations are taken into account. This
of course applies not only to automatic planning or the preparation of
planning suggestions but also to manual interaction.
As regards manpower planning – in this case production personnel –
two basic methods can be identified in companies which are essentially
determined by the environment, by the flexibility and the deployability of
the employees. The major difference very nicely describes the variance
which MES systems must deal with in the field of detailed planning.
In the one case, the manpower which is available and plannable emerges
from attendance /absence planning and acts as a restriction in the pro-
duction planning.
In the other extreme case, production planning indicates what corre-
spondingly qualified personnel are needed and this is input into short-
term manpower planning as a requirement which must be satisfied.
7.2.7 Conflict resolution by simulation and optimization
As has been described in the previous section, many alternatives exist for
planning orders on the basis of specified strategies. The number of varia-
tions rises drastically when manual interventions are included.
By applying different strategies and making an objective appraisal of the
results, various simulations can be carried out.
Fig. 7.8. Components of a stored plan
Due to this objective evaluation, the planning situations which emerge

can be compared and better plans thus obtained.
In what follows we shall describe the basic functionalities required for
carrying out useful simulations. We show the general procedure.
It is possible to save a loading plan as a simulation. Here, in addition to
the plan itself, the underlying basic data, such as the planning strategy,
the capacity available and the starting situation, are also stored.
When several simulations are run they are all produced using a single
selectable starting situation as otherwise it would not be possible to
compare them.
A simulation can in turn also be used as a starting situation for other
simulations.
It is possible, on the basis of one starting situation, to automatically start
several planning runs using different parameters or strategies.
To be able to ensure objectivity in comparisons, the different plans or
simulations can be evaluated objectively by means of key data and then
saved in turn together with a plan, that is, a simulation.
Once several simulations have been compared and a variant selected,
that planning situation can be accepted as a binding loading plan and
saved. Since in this case the starting situation will usually have changed
in the meantime, this acceptance will need to take into account the cur-
rent situation. Any conflicts or deviations which may occur will either be
corrected immediately or, if this is not clearly possible, will be marked

for processing.
For simulations dealing with the future – that is, beyond the normal de-
tailed planning horizon – so-called planning or capacity orders are sup-
ported so that realistic loadings can even be simulated when not all de-
tailed requirements are yet present.
As has already been mentioned in the overview, it is necessary to evalu-
ate different simulations on the basis of objective key data so as to be able
to compare several situations. Some typical key data used in plan evalua-
tion include:
Total delays
Idle times
Compliance with deadlines
Setting-up time
In addition to the usual criteria, specific variables exist in the companies
which take special circumstances into account and thus frequently allow
the quality of a particular loading to be assessed very clearly.
To enable coverage of specific factors of this kind, user-specific evalua-
tion criteria can be set flexibly to match the circumstances in question. As is
well known, one dilemma in production planning is that the different objec-
tives compete with each other. For example, an optimum setting-up situation
Fig. 7.9. Plan evaluation

may mean that loading or compliance with deadlines is neglected or, in the
reverse case, complying with all date requests or even date promises may be
at the expense of setting-up time or of the work in progress inventory.
This permanent conflict of objectives can be very clearly illustrated by
the following diagram in which the corners of the pyramid represent the
competing objectives and the ball in the middle the individual objective or
the compromise.
By giving suitable weightings to the individual objectives they can be
brought together and summarized in a combined objective – provided cer-
tain compromises are accepted. Various plans can now be generated and
judged on the basis of this combined objective and thus compared with
each other.
The various simulations can be generated by selecting and applying dif-
ferent planning strategies. If, for example, an overload situation has to be
compensated for, the capacity available can easily be varied by adding an
additional shift or even by simulating new installations.
If the situation as regards the individual objective can be improved by
varying a criterion, the results can be further optimized by repeating the
simulation on the basis of the “best” situation and by varying different
parameters.
To sum up, the overall situation can be continually improved by finding
“better” plans. What is of decisive importance to the quality and the success
of this procedure is the coherence of the individual objective. The manufac-
turers of MES systems offer different strategies for system-supported
optimization. Research has been going on for years into the optimization of
Fig. 7.10. Conflicting objectives in production planning

planning problems in general and its application in production planning in

particular. Many years ago, for example, so-called optimal planning strate-
gies were modern but due to long running times and the extreme effects on
the result which arose from minor discrepancies in modeling they did not
gain widespread acceptance. Current research work is concerned with algo-
rithms which look to the natural world and which adapt like evolutionary
processes. The disadvantage of such approaches is that they are extremely
solution-specific and thus in their unchanged form only to a limited extent
suitable for use in standard systems.
Some MES vendors have recognized this tendency and thanks to early
cooperation and collaboration with institutes, universities and customers
have been able to utilize their findings and incorporate them in their own
product as specific functionalities.
7.2.8 Monitoring order execution
In addition to future planning, one essential task is to monitor the execu-

tion of an order. In MES systems this is done by permanent feedback of
the actual situation to permit comparison with the detailed planning.
Accordingly, by extrapolating, for example, the running time remaining
for an operation on the basis of the current status messages it can be seen
directly whether planning can be complied with or whether, for example,
the required time will not be met due to technical problems. Thanks to
such information being available with little time delay, the appropriate
steps can be taken or problems even be sorted out sufficiently to allow the
target time to be reached after all.
A further example is when a machine standstill is detected: this can be
fed back directly to detailed planning and, for example, displayed in the
graphic planning table. The user can then see immediately what the prob-
lem source and its effects on the production situation.
As already mentioned, the graphic planning table offers a complete
overview of production and is thus a major instrument within an integrated
MES system.
In contrast to this, the predominant procedure today in the conventional
PPS environment is still to carry out planning independently of and with-
out reference to reality, which really means sailing into the void. Status
messages from production are only sent at intervals which are much too
long, for example, once per shift – and in reality even this frequency is
often not even achieved. These status messages are then taken into consid-
eration during the next planning session and backlogs or deviations evened
out. Compared with this situation, the advantages which use of an MES
system offers are incredible.
Fig. 7.11. Example of a graphic planning table used in MES HYDRA
7.2.9 Reactive planning with MES
As was already stated at the beginning, real-time feedback from production

combined with the corresponding data acquisition infrastructure in the
MES system means that deviations can be detected immediately and the
corresponding reactive action taken. This is why in detailed planning in the
MES system we also speak of reactive planning.
In addition to the planning activities which have already been suffi-
ciently described, reactive interventions are characterized by the fact that
they become necessary at very short notice and what is more as the result
of an unforeseen event.
Let us provide some examples of this kind of unforeseen event with
which users are routinely confronted every day.
Technical malfunctions in machines
Sickness of employees
Difficulties with a material being used
Short-notice changes to target dates or order quantities
Tool defects
The various faults have more or less drastic effects on the environment
and the planners reaction will in each case depend on the problem, its
effects and above all his possibilities available. It is, however, of decisive
importance that the fault itself and the systematically detectable effects of
it are displayed in real time and objectively. The action which is necessary
may then take different forms. Once again, some examples:
Due to a machine failure the planned orders need to be transferred to
other machines and this makes replanning work necessary. Since with the
new loading not all orders can be executed in the time planned originally,
this failure might possibly be evened out by means of an additional shift or
by agreeing with the customer on a partial delivery with the remainder
being delivered at a later date.
Quality problems at an automotive manufacturing plant mean that an
important and urgent order cannot be produced at the rate planned. The
deadline can be met by splitting the operation and using a parallel re-
source, thereby avoiding not only a loss of face but also painful contractual
penalties.
An important customer requires an additional quantity of units at short
notice and the company would like to oblige this customer. By planning in
the corresponding order and in particular by taking all technological as-
pects into consideration, the effects of doing so become transparent. The
various faults and effects are appropriately escalated by the MES and
communicated to the user. This, for example, might be a direct visualiza-
tion in the graphic planning table. To be able during the night shift, for
example, to notify persons on duty that a machine standstill or some other
serious deviation has occurred, not only can the corresponding media be
used, such as messaging on a cell phone, but an email could even be sent.
In addition to quick-response displays of faults and conflicts, the MES
can support the user by displaying and evaluating what alternative possi-
bilities exist. In a case of this kind, various scenarios can be simulated and
the corresponding outcomes evaluated. This thus provides the basis for
objective decision-making when, for example, a special shift or a weekend
shift is to be included. It is also conceivable that expensive overtime will
only ameliorate the effects to a trivial extent and thus make it unreasonable
from the economic point of view. To follow this line of thought a little fur-
ther, this inefficient special shift – if seen solely from the monetary point of
view – can be used for special orders in order to minimize loss of face.
7.3 Management of the means of production (resources)
As should be clear from what we have said, the planning of so-called sec-
ondary capacities or even production tools is an important task of detailed
planning in an MES system. We will now illustrate this necessity by means
of some more examples.
7.3 Management of the means of production (resources) 163
Due to the increasing complexity of production processes and due also

to technological process depth there is an increasing need for additional
high-quality equipment and tools which are therefore only available to
a limited extent. In many production areas these machine groups thus rep-
resent the bottleneck in the manufacturing process.
In ERP/PPS systems the design of the operation sheets and of the work
centers is mostly based on cost-accounting or implicit costing units while
the reality of production is concerned with technology-oriented units.
What then occasionally happens is that rough planning considers capacities
which count as non-critical as far as implementation in production is con-
cerned while the real bottlenecks are not taken into account.
In the case of tightly interlocking supply chains even the transportation
units frequently represent a limited capacity and are just as important as
the means of production themselves in the preparation of a realistically
feasible plan. This means that production of an article will not be possible
in practice if the containers especially required for this material are not
available because they have, for example, not yet been cleaned or are still
in the freight forwarder’s warehouse.
In sensitive fields such as, for example, the food or pharmaceutical in-
dustries, so-called logbooks must be kept for the manufacturing installa-
tions and even for all resources involved, such as mixing tanks, transporta-
tion containers or pumps, and the corresponding cleaning cycles also
complied with. In order to keep up with the enormous pressure of interna-
tional competition in these fields and still be able to meet very strict re-
quirements, manufacturers are forced to map aspects of this kind by intro-
ducing MES systems.
Realistic planning of production tools is not possible without a suitable
management of precisely these kinds of resources. In an MES system this
task is handled by resource management which is of course not just con-
cerned with the production tools but naturally also with the primary ca-
pacities – in other words, the machines.
Since the resources are taken into consideration in detailed planning it
can be clearly deduced what resources are needed at what time at which
work centers or machines. From this, MES resource management in turn
generates the corresponding transportation or staging orders and ensures
provision at the time required.
Taking transportation capacities into account, within the context of de-
tailed planning these transportation jobs can also be treated like production
orders and the corresponding load planning carried out.
7.3.1 Status management
The status of each individual resource is recorded, in the same way as with
machines. To make things clearer, here is an example of a status model for
a particular kind of resource.
Fig. 7.12. Example of a status model
Since there are various kinds of resources, the design of the status mod-
els is also kept flexible in resource management so that different special
aspects can be covered. Alongside the discrete status of the resources the
storage location of the resources can also be managed.
Thanks to the integrated approach of an MES system, the quantities and
times relating to processing can be posted directly to the resource. This
means that not only is this information registered but we also obtain the
basic data for monitoring maintenance intervals controlled on the basis of
work cycles or service time. These maintenance intervals are planned in
the MES’s own maintenance calendar which rounds off the range of func-
tions in an integrated MES system.
By registering and recording all activities relating to each individual re-
source a history is built up in the MES in the form of a log which can sub-
sequently be evaluated by resource and thus by machine. A log of this kind
is mandatory, for example, in the food industry and above all in the phar-
maceutical industry.
7.3 Management of the means of production (resources) 165
7.3.2 Anonymous and individualized resources
Within the context of an MES system, resources are regarded as non-

consumable operating resources available in a specific number and which
are required for production and which do not go directly into the product.
They differ in their function and use in their classification into resource
types.
A machine is a resource assigned to a work center on a one to one basis
and is thus identical to a work center or is a special instance of a work cen-
ter. This means the machine as work center represents the primary capacity
which is planned but is also at the same time a resource with the tasks
bound up with that. In the MES system a machine or a work center has
a unique identity.
Tools, transportation containers, process materials and installations are
resources which in principle can be assigned to the work centers on a tem-
porary or a permanent basis. They can occur in multiple instances and be
controlled anonymously or have their own unique identities. Capacities
are planned on a secondary basis. Resources are allocated either as pro-
duction tools in the work plan or permanently to work centers directly in
the MES system.
Figure 7.13 shows by way of example different resources which can be
used in a manufacturing process:
Fig. 7.13. Examples of resource types

Resources differ in their properties as shown in their classification into

resource types. Tools, for example, are grouped together. In addition to its
purely classificatory function, certain functionalities in the MES are also
controlled by means of this grouping. For example, load planning may
make sense for one type of resource but with another kind it might be that
service times need to be recorded.
7.4 Summary
First of all we examined how production management and the detailed

planning of an MES are integrated into the overall planning processes in
a manufacturing company. The different planning levels were presented
and their main focuses as regards detailing and time reference were exam-
ined.
On the basis of this introduction we went on to examine the central sub-
ject, namely the level of detailed planning and also the requirements which
arise from the special task demands in this field. From this in turn emerges,
as a logical consequence of an integrated production management, the
management of resources on the individualized and technological level.
The essence of this is that in the real world of production, events are
permanently occurring which result in deviations from the plan and
whose removal or treatment dominates everyday routines. Support
for users in their attempts to overcome these problems is an elemen-
tary task of an MES system in the field of detailed planning and
control. With these short-notice decisions, both the original planning
goals and algorithmic optimization strategies step into the back-
ground.
In the past section we went on to describe how an integrated MES

should be deployed in a manufacturing company in a useful and effective
manner to provide support precisely in the field of production manage-
ment. Once again the focus was mainly on detailed planning and resource
management.
These approaches were illustrated in each case by means of practical
examples which, following abstraction of the underlying principles, can be
readily applied to other branches of industry or types of manufacturing,
thereby making the specific benefits of an MES almost self-evident at this
point.
7.4 Summary 167
To conclude this chapter we might also mention the following basic

principle which every company should observe, irrespective of its sector of
industry or even of its type of organization.
The precision or level of detail in a plan and thus the effort required
to draw up the plan must be commensurate with the likelihood of the
plan actually being executed!
8 Quality assurance with MES
8.1 Quality in practice
Quality assurance has been and today still is an independent branch in

many manufacturing companies. The historically caused division between
quality assurance and production management has often resulted in an
inhomogeneous system landscape. The consequence is separate message
dialogs such as, for example, in production data acquisition and in-
production inspection. Production orders and inspection orders are in sepa-
rate systems and not infrequently defects and scrap recording is carried out
in both systems. What should also be prevented is the user being unneces-
sarily confronted with two systems, especially as production data are also
quality data. Not only that but integrating two different systems is only
possible with a great deal of effort and expense. Monolithic standard prod-
ucts may be inexpensive but they do have clearly recognizable limits. Inte-
gration of two systems is only the case at defined locations and subsequent
expansions are bound up with considerable costs.
In an MES system quality assurance is integrated into production man-
agement. The result is a reduction in message dialogs, interfaces are
avoided and there is greater acceptance on the part of the users. A further
advantage of integration within an MES system emerges in auditing and
certification activities. Then there is also, particularly in the food and
pharmaceutical industries, the requirement for FDA conformity. As re-
gards meeting FDA requirements, best use can be made of the synergies
arising from integration within an MES. Ideally these requirements will be
satisfied by means of the basic functions provided by leading MES sys-
tems. In what follows we shall be describing the functionalities and bene-
fits of an integrated quality assurance system. We will deliberately omit
any description of the various standards in this area (QS 9000, TS 16949,
VDA, and so on).
In addition to quality planning, methods for preventing defects and se-
curing product quality will also be considered. In this way the complete-
ness of the corresponding quality database can be checked as early as the
in-production inspection stage. The appropriate action can then be taken
to correct or remove deficiencies promptly. Further aspects of integrated
170 8 Quality assurance with MES
quality assurance are its component areas of documentation, evaluation

and analysis. Documentation absolutely does not mean the management
of forms but rather the gapless and efficient presentation of all data rele-
vant to quality. Great importance should be attached to traceability (trac-
ing and tracking lots, batches and products). The entire product creation
process can be traced from incoming goods, via the corresponding inter-
mediate products or semi-finished articles as far as shipping of the final
products.
It is not until an MES is installed that higher-level evaluations and
analyses with a much higher information content become possible. Inclu-
sion of all information relevant to production – and this in particular
means machine and process data – makes it possible for efficient meas-
ures for the prevention of non-conformances and for process optimization
to be introduced.
8.2 Planned quality
A quality plan is a form of project planning which aims not only to define
process flows, which are oriented by corporate goals and by what custom-
ers want, but also to monitor compliance. In connection with quality plan-
ning, Sect. 5.5.2 of DIN ISO/CD2 9001:2000 states: “The organization
must determine and plan the activities and means of reaching quality ob-
jectives. Planning must be reconcilable with other requirements of the QM
system. Planning must cover the following areas:
Processes required in the QM system
Required (product) realization processes and means
Definition of quality characteristics on different levels so as to secure
the desired results
Verification activities
Acceptance criteria and required quality records. The planning must en-
sure that organizational changes are carried out under guidance and that
operation of the QM system is maintained during these changes.” A qual-
ity planning which is transparent and complete as far as its contents are
concerned lays the foundation stone for demonstrating to the customer that
his suppliers are meeting requirements relating to function and to quality.
An MES supports the user in the systematic early preparation and planning
of all measures necessary for attaining a level of performance which satis-
fies the customer.
8.2 Planned quality 171
8.2.1 Quality master data in an MES
For the planning and execution of quality-assurance measures an MES

system provides functions for managing basic data. The following master
data are normally used for defect analysis:
Defect types
Defect locations
Defect causes
Causative agent
Measures taken
Cost types
These data should be held in a hierarchically organized structure. This
will allow, for example, detailing of evaluations on the highest group level,
starting with key defect areas.
If the defect analysis criteria are to be available in detailed form and
thus in a correspondingly large number, the MES will assist the user to
link just the relevant subsets of these basic data to articles, article groups,
characteristics or inspection and test plans. This will help prevent incorrect
inputs and increase acceptance at the data acquisition stations.
Fig. 8.1. Defect type grouping

When an MES system is deployed, one result, even on the level of the
basic data, is the emergence of synergies. There is now no need for dupli-
cated maintenance of the same kind of data as is the case with monolithic
standard products. The master data interfaces they require are in most
cases bound up with high costs and administrative outlay.
The following are some of the basis data relevant to quality which can
be managed centrally in the MES (in other words, for all MES functions
collectively):
Units
Work centers and inspection stations
Defect types and reasons for rejection
Cost types
Persons
8.2.2 Proactive defect prevention with FMEA
With the aid of FMEA potential defects can be investigated as early as

when the product itself or the production process is being designed. Suit-
able steps should be then taken to eliminate these potential defects or, if
this is not possible, to minimize them. This kind of proactive defect pre-
vention is a cost-optimized form of getting rid of points of weakness. The
FMEA can take the form of a development, design, or process FMEA. In
most cases the transitions between these forms are fluid. The MES should
treat them in a correspondingly flexible manner.
Appraisal of the causes of defects as regards the probability of their oc-
currence, their significance and their detection yields the corresponding
risk priority numbers which are then used in evaluation. This constitutes an
important basis for inspection and test planning. Due to risk assessment it
becomes evident early on which characteristics need to be inspected during
production and at what frequency.
Using an FMEA function within the context of an MES means that the
data recorded here can be used effectively and permanently for further
processing in inspection and testing planning.
8.2.3 Inspection and testing planning: the foundations

of product quality
For each inspection, irrespective of whether carried out in the receiving

section, in production or for machine capability tests, characteristics must
be defined with whose help the quality requirements can be monitored.
Equipment, activities and inspections must be established for each charac-

teristic with the aid of specifications.
These characteristics are defined and summarized in the inspection and
testing planning. Since process characteristics and product characteristics
can be used simultaneously, the MES system has at its disposal all of the
quality-related data it needs for analyses, certificates and control loops.
With the MES, inspection and test plans can be prepared which are valid
for articles, article groups, operations, customers, suppliers, standards
and/or processes, depending on requirements.
Even as early as the design process, it becomes clear which characteris-
tics of the product are relevant to quality. When an FMEA is used, a corre-
sponding weighting can be obtained from the risk priority numbers. The
integration of the FMEA into the MES allows defined characteristics to be
taken over directly here. Alternatively, characteristics can also be trans-
ferred by reading in data from CAD drawings. This avoids duplicated data
input, liable as this is to error.
Assignment of the inspection equipment to be used (or inspection
equipment groups) makes it possible to control which measuring equip-
ment can be used for quality data acquisition. Here the inspector is assisted
by the measuring instruments and measuring equipment being connected
directly. This saves time, prevents incorrect inputs and increases accep-
tance at the data acquisition stations.
The use of the MES system means that all product-specific data (work
plans, etc.) are already available in in-production inspection planning.
These data can be accessed, for example, to create the characteristics cor-
responding to each operation which has a relevance to quality. By making
a comparison between the work plans and the inspection plans the MES is
able at an early stage to reveal deficiencies in the inspection and testing
planning. A direct linking together of quality assurance and production
planning makes available all information about the machines involved, the
tools and molds used, and the individuals logged onto machines without
Fig. 8.2. Dynamization history

anything having needed to be done separately regarding data input or inter-

facing. With monolithic standard systems these data may under certain
circumstances have to be maintained twice.
The production of variants makes special demands on inspection and
testing planning. Here the same type of products are being manufactured
and only differ in details. If every product has to be looked after with sepa-
rate inspection plans this would call for an enormous amount of planning.
The remedy for this problem are so-called specification lists. The contents
of an inspection plan can thus be limited to a list of the characteristics to be
inspected without specifications actually being given. In a separate list
solely the specific features of all product variants to be produced are de-
fined. Alternatively, configuration features can be used. Here the inspec-
tion planning for each characteristic determines how the specifications are
obtained from the design dimensions. The tolerance and plausibility limits
of the characteristic are relatively predetermined. The order itself will thus
include the target values to be used and from these the remaining specifi-
cations are calculated. From these functionalities it can be seen how an
MES system supports the inspection planner. Using these planning vari-
ants reduces maintenance effort to a minimum. At the same time potential
faults due to data redundancy are avoided.
When these methods are used for dynamization the inspection frequency
can be markedly reduced since empirical values are available. These func-
tions are used primarily in receiving controls. Dynamization requires plan-
ning beforehand as to what rules it should follow. Apart from the use of
the usual standards (ISO 2859, ISO 3951, and so on) the MES system pro-
vides the inspection planner with the means for creating his own rules.
Alternatively, a dynamicized inspection can also be used in production
following the occurrence of a non-conformance, for example, to increase
the inspection interval temporarily in order to see how effective a correc-
tive measure is.
To enable him to meet the requirements for gapless documentation of all
quality-related data along the full value chain, the user of an MES system has
the possibility of using a production control plan. These control plans con-
tain all planning data for the entire production process. A control plan brings
together the data from several inspection plans. The user can either maintain
his data within the control plan or within the specific inspection plans.
Any change made to the planning requirements must be clearly docu-
mented. For this reason the MES provides all relevant data (control plan,
inspection plans, specification list entries, and so on) with version numbers
and the reasons for changes. Release and activation of a version status
ensures that only authorized persons can pass modifications on into the
production process. Furthermore, changes can be planned at a preliminary
stage and specifically activated at a fixed point in time. The version man-
agement applet allows automatic documentation of when, why and by
whom changes were made. The MES keeps these data available for re-
search purposes such as, for example, into the history of particular parts.
If the MES includes an initial sample inspection, the user receives sup-
port in importing the corresponding characteristics into production inspec-
tion plans. All relevant settings are imported and can be edited if so de-
sired. Even this reduces the planning effort and prevents those errors
which can occur when quality characteristics are copied manually.
8.2.4 Inspection equipment: reducing measurement

uncertainties
Inspection equipment is subject to wear. Inspection equipment cannot be

used unless it is capable – in other words, it meets manufacturer and proc-
ess requirements. To secure this capability, examinations on the basis of
particular standards (QS 9000, VDI 2618, and so on) must be carried out at
regular intervals. What this means is that before inspection equipment is
used, activities, means and dates must be defined to secure inspection
equipment capability.
Use of an MES means that the possibilities of an efficient management
of inspection equipment are fully exploited. As part of quality planning,
definitions are drawn up for inspection equipment capability checks which
lay down which characteristics should be monitored with which resources
and against which specifications. Depending on which standard is being
used, it must be established beforehand which statistical parameters (re-
peatability/measuring device scatter, comparability/test scatter, repeatabil-
ity/comparability, scatter from part to part and total scatter) must be used
as basis for the capability record.
Using an MES inspection equipment management applet simplifies the
planning of capability investigations. In calibration planning the intervals
for calibration are decided, and these can be time-based or piece-based
intervals. When determining the due times by piece-based intervals, use is
made of the information available to measured data collection regarding
the inspection equipment being used. With the aid of a wear factor, it is
possible for every work center where inspections are being carried out to
define how rapidly the inspection equipment will be detrimentally affected
in this environment. For example, an inspection device in a machine
which is exposed to oil and coolants will wear more quickly than when
the device is used in a clean room. With the aid of these functionalities the
MES can considerably reduce the number of calibrations to be carried out
since realistic wear-oriented time scheduling is possible. When advance

warning times are used, the time buffer can be individually defined from
the first notification up until the time calibration is actually due.
8.2.5 Supplier rating: optimizing the procurement process
The quality of the materials flowing into production has a great influence
on the quality of the products, especially in the light of increasing speciali-
zation and the reduction in vertical integration. Before the best suppliers
can be selected in the purchasing department, effective evaluation methods
must be deployed. One of these methods is supplier rating.
Supplier rating is a classic domain of ERP/PPS systems. Here all rele-
vant factors are collected with data being read in from subsystems via in-
terfacing functions. Key data are obtained for the various suppliers from
all of these individual factors and possibly too from subjective criteria as
well. These key data are used for rating the suppliers and are also very
useful during meetings with suppliers. These methods make it possible for
the quality of supplied goods and materials to be continuously improved.
Once the MES has all of the data used in supplier rating, in straightfor-
ward cases supplier rating can even be carried out within the MES system
itself. Since real-time data are available in the MES it is also possible to
take a snapshot of the current quality situation of a supplier.
Before supplier rating can be carried out in the MES system, the corre-
sponding criteria must have already been defined or taken over from the
ERP/PPS system. This takes the form of rating catalogs. In these, different
evaluation blocks can be defined in a freely definable hierarchy. Evalua-
tion criteria are then assigned to these blocks, being classified at the same
time into the categories of “subjective” and “automatically determinable”.
While the subjective criteria have to be assessed manually, the automatic
criteria obtain their results from the MES datapool directly.
Both the evaluation criteria and the evaluation blocks can be weighted
differently. The block is graded is on the basis of the current grading of
a criterion and its weighting. The supplier rating is calculated from the
evaluations and weightings of the corresponding blocks.
In the rating catalogs as well the MES system applies the versionization
and activation procedures already familiar from inspection planning. This
ensures that even in this area, all changes in the planning basis are gap-
lessly documented.
The decisive advantage in using an MES is that all of the data present in
the system can be called on directly when assessing suppliers. The result of
the MES supplier rating can either be used directly or be consulted within
the ERP/PPS system for a comprehensive assessment of a supplier.
8.2.6 Setting up workflows with escalation scenarios
Before the quality requirements made of products can be met, it will be

necessary to plan out all of the measures which assist quality assurance.
These include not only managerial and operative-level activities but also
the reaction to events affecting quality.
In the planning field, process sequences relevant to quality are defined
in the form of workflows. Due to the scope of functions provided by the
MES, the definition of these workflows can access considerably more
possibilities than is the case with monolithic standard products. For exam-
ple, detecting non-conformances during the downstream quality inspection
can have a direct impact on production in progress. In the simplest case,
foremen or shift foremen handling jobs for the nonconforming article
which is being produced or is about to be produced are informed about the
problems.
Complaints too can be processed more efficiently with the aid of saved
workflows. The MES thereby ensures that proven process sequences are
taken into account in complaint processing. Another advantage of this kind
Fig. 8.3. Workflow-supported complaint processing

of structured complaint processing is that the current status and a history

showing the various actions taken can be displayed at any time on the basis
of the workflow steps completed.
To be able to take advantage of all of these possibilities, the underlying
workflows first need to be defined. If at all possible this should be done
graphically as only in this way will complex sequences remain transparent
and allow necessary modifications. More advanced MES systems offer
a flexibility which permits even different forms of workflows to be used
for a different data context (customer complaints, internal complaints, and
so on). By monitoring the workflow in conjunction with time-based con-
trol, the MES ensures that the sequence does not come to a standstill. Use
can also be made of escalation management functions during planning.
This means that individuals (or groups) defined subsequently can be spe-
cifically notified.
The continuous improvement in the workflows results in a marked in-
crease in efficiency in operational processes. Flexible workflow control
and monitoring with a wide variety of possibilities for interdepartmental
communication is a great strength of an MES system.
8.2.7 Quality planning within production preparation
The fact that quality planning is a constituent part of an MES system

means that a number of functions are available which with monolithic
standard products can only be obtained, if at all, by the use of interfaces.
Accordingly, historical data from quality assurance can be used in produc-
tion planning in particular. A list follows of some of the possibilities which
the MES can thus make available:
Before a production order is released, the MES checks to see whether
there are any complaints relating to the article and/or the customer. If so,
the production planner is notified. Following further investigation (for
example, by an analysis as to whether the cause of the defect has some-
thing to do with the scheduled machine) a decision can be made regard-
ing whether the production order should be released as planned.
Before production orders are released to particular machines, the MES
checks to see whether a corresponding machine capability has been es-
tablished by quality assurance for the process in question. If not, the fol-
lowing scenarios are conceivable:
The production order cannot be authorized for this machine.
A corresponding machine capability test is arranged.
An information message is displayed. Optionally the production order
can be released.
Before a production order is released, the MES checks to see whether

there is an initial-sample release for the article to be manufactured for
the customer. If not, the following possibilities exist:
The production order cannot be released.
The initial-sample release is obtained.
A corresponding initial sample inspection is arranged.
An information message is displayed. Nevertheless the production
order can still be released.
In production planning the MES system can access cm and cmk values
from quality assurance. These data will then be available to assist in an
optimum machine assignment.
An MES is superior to monolithic standard applications not only in the
analysis of historical data. For example, even as early as the production
planning stage, possible flaws in the inspection and testing planning can be
picked up. The appropriate steps can be taken to close these gaps even
before production starts. Some examples of this are listed below:
The combination of production planning and quality planning means
that inspectors and measuring equipment can be planned in. Bottlenecks
are detected in good time and can be prevented by the appropriate cor-
rective action. An additional benefit derives from the fact that the in-
spectors can be planned in according to their qualifications. The MES
provides information and virtual assistants to help the production plan-
ner and point out potential problems.
When it calculates the lead time for a production order the MES can
access information from in-stream or downstream inspections. With this
information more realistic conclusions can be drawn regarding produc-
tion times.
When production orders are released it will have been ensured that the
corresponding planning level of quality assurance is present in its en-
tirety. Deficits (missing inspection and test plans, and so on) can be cor-
rected by timely introduction of the corresponding corrective measures.
During production planning, the MES ascertains whether calibrations of
measuring equipment assigned by inspection planning will become due
during the relevant production period. This information is displayed by
the MES and corresponding measures can then be taken. The resulting
production delays are available beforehand as displays. This functional-
ity deploys its full effectiveness when piece-based calibration intervals
are in place.
8.3 Integrated quality
Process quality is a necessary condition of product quality. High-quality

products can only be manufactured by capable, controlled processes.
If a defect is detected in good time, for example, as early as the design
stage, considerably lower costs will be incurred than with discovery dur-
ing production, final checks or, even worse, by the customer. This is im-
pressively illustrated by the so-called rule of ten for failure costs. Accord-
ing to this, the costs of failure will rise tenfold at each process step where
the defect is later (with respect to its time of origin) detected and cor-
rected. To prevent defects, quality-assurance methods must be incorpo-
rated in the entire process chain, from incoming materials via production
as far as dispatching.
Capability checks carried out in production secure the suitability of pro-
duction processes and the machines involved in them. This ensures that
quality-related characteristics can be produced within the specified toler-
ances. With the aid of the MES, use can be made of the findings from
these checks in statistical process control (SPC) in production.
An inspection resources management function is necessary in order to
demonstrate the capability of inspection resources and to monitor informa-
tion supplied by the manufacturer. It is only with the aid of regular calibra-
tions that it can be ensured that the measured values are realistic. The MES
system supports the user in the management of inspection, measuring and
test equipment, the corresponding calibration and their provision to users.
In addition, scheduled dates are monitored which means that notification
can be given in good time when calibrations are impending.
Non-conformance management regulates the processing of complaints,
defect analysis of them and the implementation and monitoring of imme-
diate responses and corrective measures. To ensure that defects analyzed in
complaints do not have any impact on current or future production proc-
esses, MES’s workflow control supports the user by exerting an influence
on inspection planning and on current receiving controls, production in-
spections and final inspections.
Provided an MES is used systematically, it will not be long before
a broad knowledge base can be accessed. Here, in the event of a recurrence
of a problem, the existing knowledge is used (by accessing successfully
applied problem solution strategies) so as to be able to react faster and
therefore less expensively. By creating quality control loops, the MES
system makes a decisive contribution via defect prevention to reducing
costs while improving product quality and customer satisfaction.
8.3 Integrated quality 181
8.3.1 Quality via information management
The integration of production and quality management means that all rele-
vant data can be clearly displayed within an application. Users do not need
to run several systems in parallel in order to view information or maintain
it. There is no need for redundant inputs and/or expensive interfaces.
When an action and escalation management function is integrated into
the MES system, standardized tools become available for systematic and
documented notifications and assignment of tasks. This results in short
information paths between shift foremen, machine operators, inspectors
and quality managers. Integrated progress control helps users not lose track
of important activities.
With the aid of workflow-based process control, in-house know-how
can be mapped transparently and used efficiently. Should an employee in
the quality laboratory report sick, for example, his supervisor will be noti-
fied of the orders in which inspections are affected by his absence. This
allows the absent employee’s tasks to be reassigned in personnel planning
to other employees with the same qualification.
8.3.2 Securing supplier quality
Product quality is decisively affected by the quality of supplies. If no qual-

ity agreement has been made with the supplier, receiving controls will
reduce the risk of nonconforming materials or components getting into the
production process. Dynamization reduces the inspection and testing out-
lay arising from this. With this, once there have been several defect-free
deliveries of an article from a supplier, inspections are cut back. Should
a defect be subsequently detected, inspections can be stepped up again.
When an MES system is used, production can access the results from
receiving controls. The data relating to the particular receiving controls
from which the incoming materials or components derive are made avail-
able by material and production logistics. Should problems arise during
production which can be traced back to defective incoming goods the MES
can take immediate steps to tighten up inspection of deliveries.
If consignments are rejected as a result of receiving controls, it is possi-
ble in the MES to draw up a supplier complaint immediately.
On the other hand, when goods are received an immediate check can be
made on the basis of current and historical supplier complaints as to whether
the consignment should be classed as potentially critical. A notification is
issued with a view to making employees more aware of the problem.
8.3.3 In-process quality assurance
In most cases a statistical process control system is deployed to ensure that

the production process is quality-capable and controlled. Alternatively, it is
also possible to employ random sample testing, the so-called lot acceptance
inspection by sampling. What these two methods have in common is that by
means of statistical calculations they can provide information about the cur-
rent quality situation of the production process. These can be used to directly
influence the production process, if need be with the aid of defect analyses
and the corrective and remedial measures derived from them. These inspec-
tions thus serve as a basis for control loops which represent a completed
action sequence in order to generate a quality product within a process.
It is precisely in in-process inspection that an MES delivers considerable
advantages in comparison with monolithic standard products. Accordingly,
by means of a corresponding marking of quality-related objects (articles,
operations, lots) the quality management functions and displays which are
actually needed are activated. The way an MES synchronizes production
management and quality management enables a unified view at the manufac-
turing process. This results in a plannable and transparent overall structure
Fig. 8.4. Jobs with production- and inspection-relevant operations

8.3 Integrated quality 183
instead of the previous separation into productive operations and inspection

steps. Here a production order can include several operations taking different
forms.
Here the results of the quality inspection can influence following opera-
tions. For example, unsatisfactory characteristics may make a reworking
step necessary. In the same way the inspection decision can have an impact
on use of the semi-finished or finished products so created.
Further advantages of production management and quality management
integrated by an MES system include:
Yield and scrap quantities are reported back and evaluated in a uniform
manner irrespective of whether the classification was made for produc-
tion- or quality-related reasons. Individual systems continually have
problems with the different handling methods.
In all displays and reports, the order progress and the corresponding
order quality can be presented simultaneously.
In the case of production-related data acquisition at the machine all
relevant data can be seen at a glance. Alongside the current quantities,
information about impending inspections and about out-of-limit condi-
tions which have occurred is also displayed. The user’s attention is
drawn to quality-critical information by means of color-coded displays.
Even with interval-based inspection all order data are available directly
and without detours. Direct access to production quantities means that
piece-based intervals integrated into the production process are possible.
With time-based intervals, taking machine status into consideration can
result in the inspection being suspended. This means that realistic in-
spection intervals are obtained which would not have been possible with
separate acquisition of order, machine and quality data.
Assuming the corresponding interfacing exists, if there is a deterioration
in the quality situation it can be possible to influence the machine di-
rectly. In the case of an automated quality inspection, for example, if an
intervention threshold is crossed this can trigger a machine shutdown.
8.3.4 Optimization of inspection equipment monitoring
Inspection equipment management is required to ensure that measuring

equipment is only used when it has been uniquely identified. Measuring
equipment must be inspected and approved for use. Testing is carried out
to ensure that the measuring instrument corresponds to the specifications
of the manufacturer. The measured values must fall within a defined range
of tolerance. The results of the test must be reproducible. If the inaccuracy
of measurement determined cannot be reconciled with the quality require-

ments the inspection equipment in question must be barred from use.
The MES supports the user in managing and monitoring his inspection,
measuring and test equipment. The fact that even these inspections take
place within the MES means that all information is available regarding
frequency of use. This information could, for example, be used for deter-
mining wear-dependent calibration intervals. In the case of piece-based
calibration intervals the dates scheduled for calibration can be monitored
in real time and directly at the machine.
Should an item of measuring equipment become due for calibration
while it is in service, the inspector will be informed directly. As an option
the item could be barred from further use. Integration of quality manage-
ment means that measuring instruments can, if so required, be calibrated
on the spot. This may make sense particularly when inspection equipment
cannot be moved, as is the case with inspection machines.
8.3.5 Transparent complaints management
A complaint is always the result of poor quality, whether this be erroneous

or inadequate information or unsatisfactory product quality. It does not
matter whether it is an internal complaint, a customer complaint or a sup-
plier complaint.
MES complaints management provides support in the registration and
processing of complaints. Furthermore, the immediate responses and cor-
rective measures taken are monitored. The system also assists the user in
defect analysis. Naturally all of the data relating to a complaint, including
the costs, will be available for subsequent evaluations.
Fig. 8.5. Example of a structured defect analysis

8.4 Documented quality 185
Approved processes are taken into account by means of workflow-

supported complaint processing. At the same time the processing of
a complaint is gaplessly documented. The scope of functions provided by
the MES results in additional synergies which monolithic standard prod-
ucts do not offer. Certain reasons for a machine malfunctioning will lead
to an internal complaint being automatically generated. The corresponding
fault analysis together with the resulting action can be used in the future
for preventing problems of the same kind or at least minimizing them.
Integrated escalation management also opens up new possibilities.
When a complaint is created for an article for which scheduled production
orders exist, the quality officer can be notified so that suitable preventive
action can be taken to avoid further complaints.
8.4 Documented quality
Appropriate handling of “information” considered as a commodity is an

increasingly important factor in the competitive situation on the market.
More and more companies thus regard their documentation as forming
a major quality criterion for their own products. Also increasingly impor-
tant is the requirement that information of decisive importance can be re-
trieved immediately without any great loss of time or any costs being in-
curred. This is of particular interest in the case of complaints, product
liability issues, and meetings with suppliers or customers. The broad data-
base in a MES which was created by the interaction of different modules
allows the company to process the corresponding tasks effectively.
Interpretation of the term “documentation” is complex as regards quality
assurance. Basically documentation means the efficient and gapless acqui-
sition, management, archiving and preparation of quality-related data.
A closer examination reveals different aspects of the term “documented
quality”. On the one hand we have the centralized access to documents
which are needed in the various quality assurance departments or which are
created there. It should be noted that there is no requirement whatsoever for
these documents to relate exclusively to quality. What is also important is
access to information from departments outside QA/QC, departments
which are “quality-remote”. On the other hand, documents which are cre-
ated in quality assurance, for example, as a result of recording measured
values, should also be made available interdepartmentally. With an MES
system, information can be mutually supplied in a suitable manner. What is
of decisive importance here is the networking within an MES system (hori-
zontal integration), since efficient data access deteriorates as the number of
installed systems in which the data originated increases.
In addition, information relating direct to the quality data should also be

included. The influencing factors which are significant in quality assurance
documentation should be identified beforehand. Conversely the effect of
changes in the actual quality data on “quality-remote” corporate and prod-
uct processes must be taken into account.
Traceability assumes a particular importance here. It is important on ac-
count of product liability, and in particular the legislation which came into
force in 1990 with the new reversal of the burden of proof, a duration of
liability of 10 years, and an expanded coverage of the term “product”. In
addition there is also the August 2002 legislation concerning changes to
the rules about compensatory damages according to which claims for
compensation for pain and suffering now come under product liability.
Another reason for introducing a traceability management function is
Regulation (EC) No. 178/2002 of the European Union which states that all
companies in the food industry must implement a traceability system by
1 January 2005.
8.4.1 Networking of information
In the quality data acquisition function of an MES system not only can
order documents, tool and machine information be accessed but also data
relating to production planning. This means that the limitations in obtain-
ing information found in the island solution “quality assurance” have been
dismantled. The planned duration of production and thus the completion
data are thus equally as accessible as information on how much of the cur-
rent job has been completed. Furthermore, the inspector can examine
stored work plans and thus obtain an overview of the subsequent produc-
tion process. Only this comprehensive access to all relevant information
will make it possible for the correct action to be taken with quality prob-
lems. In the case of areas of weakness which are due, for example, to tool
wear, it can be ascertained immediately whether a replacement tool is
available or whether a complete re-tooling to a different product is neces-
sary. Global access to the information relating to the next scheduled main-
tenance for the machine means that a decision can be made straightaway to
bring the maintenance forward. An MES system supplies all required in-
formation in the latest state required.
The MES allows any user to access the data which are relevant to him.
Documents need only be prepared once, after which they only require net-
working with the individual function blocks. This gets rid of redundant
document maintenance and assignment. For example, an article drawing
can be stored centrally with the article master data and be available to all
MES modules. This centrally stored document can be accessed not only
during acquisition of measured values in the test laboratory but also in

connection with operation and order information at the machine.
8.4.2 Using quality data appropriately
It is becoming more and more important to supply information from dif-

ferent divisions of the company in a clear and well-organized form and to
link such information functionally. Exclusive access to quality data is no
longer sufficient. When all data can be accessed, quality data can be traced
back to their time of origin. Friction losses are minimized since all indi-
viduals with the corresponding entitlement can call up the information at
any time and at any location. Not only the quality managers but also all
other departments, from purchasing and development to servicing person-
nel on the customer’s premises, can work using a uniform database. This
ensures the necessary flexibility, especially in functional interlinking,
without additional costs being incurred.
One example of this is the inclusion of the employee’s “operator’s li-
cense” from personnel management. While it was once sufficient to have
documentation of “who inspected what”, today it is becoming increasingly
important to take into account the requisite inspector qualifications. Inclu-
sion of the employee’s “operator’s license” means that it is possible to
prevent tests or inspections being carried out by individuals who do not
have the necessary qualifications. When validity criteria are taken into
consideration it is even possible to check whether the inspector has in-
spected a particular article often enough over recent months to continue to
retain his qualifications for inspecting this article. If necessary, he may
need to requalify.
Classic examples of documenting quality data are the testing and inspec-
tion certificates in accordance with EN 10204, such as inspection certificate
nos. 3.1 and 3.2, and specific test report nos. 2.1 and 2.2. On the part of the
customer there is very often a demand for special certificates with a greater
content. The form and nature of these certificates may vary from customer
to customer. The relevant agreement is often limited to stipulating that in the
case of a complaint, for example, a certificate has to be provided which
gives the information desired. In most cases problems arise at the latest in
expanding the contents to include relevant data about the corresponding
process characteristics. This is not the case when an MES system is in ser-
vice. The required documents can then be given a flexible design as far as
the contents are concerned and can be adapted to customer requirements.
The inclusion of all quality-related events which affect the product
quality represents an expansion of the classic documentation. This in-
cludes interconnecting production data and quality data. Faults which
occur during the product creation process have a great influence on the
resulting product quality. The same is true of the characteristic values of
process, machine and tool parameters. All in all there are five groups of
causes which are responsible for deviations in quality:
The individual as an operator or inspector;
The material used as the result of an upstream production process;
The machine with the elementary influencing factor, the tool;
The method which decisively determines the interplay of the individual
and the machine, and
The milieu with various environmental influences such as temperature
and dust, for example.
One example of the importance of the “tool” as an influencing factor is
the risk of voids forming should a specified mold temperature not be
reached. Due to the dependence of product quality on the diversity of in-
fluencing factors associated with the cause groups mentioned above, the
interlinking of all information takes on a great importance. This is made
clear by the gapless documentation of part history which is required as part
of product liability and which is a constituent part of an MES system.
The part history must include other information in addition to known in-
fluencing variables. It must always list all important events which occurred
from the time the drawing was prepared to when the tools were scrapped.
Should there be modifications, these must be described and reasons for
them given. Possible contents of a part history include:
The date of sampling and the beginning of deliveries for production
purposes;
Information about tool repairs;
Information about process optimizations;
Information about release changes, and
The use of new materials.
In the case of complex products, such as machines or automobiles, in
addition to the historical approach there is also the requirement that events
be integrated into the part history following completion of the product. If
a safety-related component is replaced, this change must be documented
on account of the traceability required in connection with product liability.
To enable the correct response to be made in the case of a damaging event,
which person must respond to which events will be stipulated. Should the
damaging event occur, progress control of all activities will be required.
These in turn must be integrated into the part history.
Under no circumstances should the changes in quality-related data

documented in a part history be considered in isolation. It should instead be
remembered that every change can also have various impacts on other de-
partments or processes. While there is a risk with monolithic quality assur-
ance that these changes will remain undetected or not necessarily automati-
cally have an effect on other departments, an MES system ensures that
information is forwarded immediately. All corporate departments or divi-
sions have direct access to the revised contents or documents. Consequen-
tial costs caused by a delayed inclusion of changed and quality-related data
are avoided. Any correction of measured values which becomes necessary
after the event can have an effect on the inspection decision and thus on the
quality status of the corresponding production lot. In such a case the MES
system prevents further processing of the rejected lot in all downstream
production processes. All lots into which the rejected lot has already been
packed will also be rejected and prevented from being shipped. In the worst
case, products which have already been shipped may have to be recalled
from circulation. To limit the damage and the associated costs the auto-
matic functions of an MES system will be required. Since there is collective
access to all relevant data a swift and effective reaction is possible.
Impermissible deviations detected during inspection equipment calibra-
tion or during machine or tool maintenance can have similar effects. The
results documented with this inspection equipment may be based on incor-
rectly measured values. In this case as well the production lots in which the
inspection equipment was used must be barred or a reworking note issued. In
the event that these impermissible deviations cannot be corrected, the item of
equipment must be quarantined and thus no longer be available as a resource.
Upon the equipment being barred for use, the MES must check immediately
to see whether it has already been planned into future production orders. If no
alternative resources are available, replanning will be necessary.
Causes of defects identified even during the course of a complaint inves-
tigation can have direct effects on the production in progress or impending.
If the cause of the defect is determined to be an incorrectly assigned DNC
program or to maintenance which was not carried out, appropriate action
should be initiated without delay. If necessary, the current machine settings
and the tools being used should be checked. It is important that the checking
process is instigated rapidly and that it should be automated as much as pos-
sible so that consequential costs can be avoided. The use of MES’s higher-
level escalation management function can also make a contribution here.
Once a complaint is formally opened this function allows an automatic
check to be made to see whether the corresponding article is in any sched-
uled or current production orders. If the check is positive, the production
manager or the planning manager will be informed. If specific defect causes
are assigned or actions identified, an escalation can be initiated together

with automatic notification. Should receipt of the message not be acknowl-
edged, other individuals such as deputizers will be informed automatically.
These examples illustrate the effect of changes in quality-related data or
of decisions on other corporate departments or processes and reveal the
necessity of deploying an MES system as an integration platform for pre-
vious island solutions.
8.4.3 Traceability
To make traceability possible, all lots or batches or even individual prod-

ucts must be uniquely labeled. This must be kept up throughout all stages
of manufacturing and all logistical processes. Only in this way can the
origin of products be determined along the value chain.
Traceability includes not only tracing but also tracking a product within
the creation or delivery process and requires that the information flow be
linked to the physical flow of material.
The reasons for introducing a traceability function may be statutory re-
quirements relating to product liability or general customer requirements.
Fig. 8.6. Tracing of materials and production lots

Fig. 8.7. Tracking of materials and production lots
Traceability is gaining in importance and not solely from the point of view
of statutory requirements. It is also becoming increasingly important in the
context of reducing production costs and thereby increasingly becoming
a strategic factor on the corporate level.
In many companies quality assurance systems are established as island
solutions. They cannot however provide complete traceability and in the
event of a claim this can lead to problems. In connection with statutory
regulations, the introduction of a traceability system is indispensable. Help-
ing users to manage this requirement is a basic task of an MES system. To
put it another way, MES is about ensuring the traceability of products.
All of the details of product creation are traceably documented in
a traceability system. This includes information from all modules of an
MES system, for example:
Lots or batches coming in or being created
Lot and batch attributes describing material (for example, weight,
length, bond areas, date of manufacture, expiry date)
Operating supplies used
Machines used
Process data obtained
Individuals involved in the production process
Tools used
Repairs of machines and tools

Quality data (such as measured values, inspection equipment used, in-
spection decisions)
All events, from incoming goods, via the intermediate products or semi-
finished articles up to the final product, are registered by the system in the
background. Here a central importance is attached to lot or product track-
ing, the process mapping, documentation of how parts are used, and con-
necting together all quality-related data.
A general view makes the benefits of a traceability system very clear.
The system makes it possible to intervene actively in the process at the
point where defects are arising. This is possible on account of the detailed
documentation, monitoring and visualization of the entire production proc-
ess. In addition we may also mention the networking of the production
processes with the production systems.
The necessary data networking cannot be achieved without the use of an
MES system which allows the demands made of all requirements to be met.
Traceability is something more than straight quality assurance and delivers
immediate economic advantages all along the value chain. Processes can be
optimized and product lead times and inspection times reduced.
8.5 Analyzed and evaluated quality
Today it is more important than ever to obtain the information relevant to

decision-making in a clearly prepared form. Evaluations and analyses in
real time provide important information allowing well-founded decisions
to be made or actions to be taken in real time. Appropriate data must be
quickly available for every corporate level (from purchasing, sales, pro-
duction and up to the topmost level of management).
In these days of global procurement of information, an isolated examina-
tion and analysis of quality data plays only a subordinate role. This does not
mean that statistical key values and analyses of unadulterated quality data
are no longer important. They will continue to be needed and indeed often
form the basis for higher-level evaluations. However, achieving ever shorter
product cycles, optimizing processes and being always one step ahead of the
competition means that all potential means of evaluation must be exploited.
It must be possible to react flexibly to rapidly changing general conditions.
Here monolithic standard products with permanently defined integration
points rapidly come up against their limits and the necessary expansions for
their interfaces must be purchased at great cost, although nothing can be
done about the absence of flexibility.
8.5 Analyzed and evaluated quality 193
An integrated system offers the required flexibility, since by its basic

structure it already allows access to all data from “quality-remote” areas,
such as machine, tool, personnel and process data. Improvements in ob-
taining information within the company are the result and this forms the
basis for process optimizations and the future success of the company.
8.5.1 Potential for improvement in production
Product quality is affected by many different factors. An exclusive analysis

of quality data by means of
Control charts,
Statistical key values,
Distribution tests,
Main defects,
Complaints,
Inspection equipment calibrations, and so on
makes only a small contribution to improving the production process and
the product quality. The potential for optimization is thus not fully ex-
ploited. What is of decisive importance is the inclusion of external influ-
encing factors, which are also referred to as “quality-remote” parameters.
These include:
The acquisition and processing of process data
Operating resources management
Material management
Personnel management
This is achieved with an acceptable level of effort and at low cost by the
use of an MES system. While correlations within the product characteris-
tics can be identified without a great deal of trouble in a CAQ system, such
a system soon reaches its limits when process characteristics are included.
It is precisely the higher-level analysis of product characteristics and proc-
ess characteristics that has a considerable potential for improvement. The
pressure or temperature in a machine can have a decisive impact on certain
product characteristics. If a relationship of this kind is picked up by means
of a higher-level correlation analysis it will be possible to achieve a sus-
tained reduction in the scrap rate by monitoring the pressure or the tem-
perature. It is conceivable that automatic monitoring will allow longer
intervals between product characteristic inspections and this means savings
in inspection costs.
This all-encompassing analysis of the machine data makes possible an
additional optimization of the production process. By evaluating the reasons
for idle times or the utilization ratio with respect to the articles and article
groups being produced there, the best machine for the particular instance
of production can be identified. A further improvement becomes possible
when the machine-related reasons for malfunctions and for scrap are ex-
amined in relation to the product defects detected by inspections and the
reasons for these defects. In addition to examination of the lead time there
are more “quality-remote” factors which will allow optimization of value
creation.
Another example of the advantages of a comprehensively networked
data pool is a cavity-based and cavity-comparative analysis which takes
into account the entire history of the mould. This will reveal the effects on
product quality of repairs to or maintenance of individual cavities or
whether individual cavities need frequent re-machining during repairs and
maintenance.
One advantage of an MES system is that the data required for analyses
are rapidly, systematically and inexpensively available from all depart-
ments. Since data acquisition and processing as a whole is based on uni-
form master data these evaluations can be regarded as secured. There is no
duplicated management and maintenance of master data on the basis of,
for example, reasons for scrap and malfunctions, types of defect, causes of
defects. This means there is no risk of faults in quality management nor, as
part of identifying the reasons for problems, in machine data collection
being registered twice over or incompletely and being analyzed separately.
Without this unitary approach to analysis it is difficult to define a clear
structure for determining the number of reject parts.
8.5.2 Learning from complaints
An indispensable part of a comprehensive complaint analysis is that access

is also possible to the tool data (maintenance and repairs) as well as to the
machine evaluations (for example, reasons for malfunctions, scrap, ma-
chine idle time). It is important to clarify whether there were difficulties at
the machine during the production time or whether a tool change took
place on account of problems. The reasons for defects can thus be quickly
identified and corrective measures taken to prevent them occurring in the
future. As part of tracing there will be rapid access to all materials used,
including the corresponding detailed information. This means that an an-
swer can be obtained quickly to the question “on which machine, with
which tool and by which shift or individual was the nonconforming prod-
uct made”. The consequence is that it takes less time to process com-
plaints, which in turn is in the interests of customer orientation.
8.5.3 Six Sigma: putting a stop to waste
Despite the introduction of quality management systems, such as those

based on ISO 9000:2000, QS-9000, VDA 6.1 or ISO/TS 16949:2002, there
is still considerable room for improvement in processes and products. Ex-
perience shows that defect costs in companies run to as much as 30% of
annual turnover. There is a reserve here which should be exploited. Further
optimizations can be achieved by
Reducing lead times,
Reducing inventory,
Increasing productivity,
Improving delivery reliability.
Six Sigma is a suitable method for improving the quality of products
and processes. It forms a basis for increasing customer satisfaction and for
a sustained improvement in performance. The idea behind Six Sigma is to
detect the number of faults in processes, to measure them and then to sys-
tematically eliminate them. Even if the core of Six Sigma is based on the
application of statistical methods, the concept is considerably more com-
prehensive due, among other things, to the inclusion of findings relating to
the processes. This is illustrated by the successful use of Six Sigma in ad-
ministrative areas such as after-sales service and sales order processing.
Fig. 8.8. The five Six Sigma project phases according to DMAIC
Restricting Six Sigma to quality management data will not suffice. Instead,
information from all departments of a company, such as operating re-
sources management, materials management and personnel management.
Examples of this are the lead times for orders and the reasons for malfunc-
tions and downtimes when a production stop occurs. This shows how im-
portant is the use of an MES system with its networked information.
The DMAIC cycle is frequently employed as a means of achieving
process and product improvements. The DMAIC cycle has five phases and
ensures that an improvement project is defined correctly and carried out
using suitable methods.
Experience shows that when Six Sigma is used, waste in a company due
to defects, overlong lead times and excessive costs can be drastically re-
duced within a few months. In addition, the results of Six Sigma projects
can be applied directly in many MES functions such as resource planning
and order planning.
8.5.4 Quality information: added value in the MES
As far as analyses are concerned an MES system has several advantages

over monolithic standard systems. First, data from “quality-remote” mod-
ules can be used directly in quality analyses. In addition, many analyses in
other MES modules cannot deliver the required level of informativeness or
precision unless there is a direct link with the data from quality assurance.
One example of this is the determination of order costs. Order costs in-
clude not only the personnel used for production, the tools used, the mate-
rial consumed but also the testing and inspection costs as well as any inter-
nal complaint costs which may have been incurred. The inspection costs
are themselves made up of the personnel used combined with inspection
duration and the measuring equipment and machines used. With an inte-
grated solution the costs due to inspection together with the corresponding
order reference can be automatically posted to a central cost center in real
time. Since the measuring equipment and machines used are known, the
calibration costs incurred can, if so required, be posted proportionally to
the corresponding order. Reporting back of all order costs can then be ef-
fected via the interface of the MES system with the ERP/PPS system. This
comprehensive pool of information means that a better and more precise
cost calculation can be made in the ERP/PPS system.
The inclusion of the quality data in other MES evaluations makes possi-
ble a higher degree of production transparency. This means that ad hoc
decisions can be made more easily with running processes. Both the cur-
rent status of machines and orders and also the quality situation can be
displayed by the MES in the form of a graphic machine park. The user is
Fig. 8.9. Graphic machine park with quality information
aided in making decisions by being able to directly access detailed infor-

mation in the form of control charts, quality non-conformances detected,
action taken and ppm values.
In addition, actions which are important for quality assurance are in
most cases also important beyond the circle of people using a CAQ sys-
tem. By means of a system-wide action and escalation management func-
tion, an optimum distribution and processing of tasks is ensured as is the
ascertaining of “real” effectiveness.
An MES makes it possible to compare at any time the current ppm value
(number of defects per million possibilities) with the limit values prescribed
in quality assurance. Via the MES the number of parts which have been
produced is determined automatically and, taking into account the number
of nonconforming pieces, the produced ppm rate can be calculated immedi-
ately. A warning can be given as soon as a limit value is violated and an
escalation initiated. A necessary condition of this, however, is that the num-
ber of manufactured parts and nonconforming parts be registered centrally
and not twice over – that is, in both quality assurance and production.
9 Personnel management with MES
9.1 Overview
Personnel is an important resource in a manufacturing company, if not the

most important resource of all. One task of an MES system is to carry out
effective and flexible planning of labor capacities for use in production. In
a networked production department it is important to include not only in-
stallations and machines, orders and qualities in planning and optimization
but also to a particular extent labor capacities.
The increasing importance of the “resource” of personnel in the produc-
tion process has to do with two reasons primarily:
1. Since wage costs and non-wage labor costs are very high in industrial
countries they have a great influence on production costs. As the result
of the general trend towards globalization and the economic opening up
of many countries in the Far East, workers in our latitudes are in direct
competition with workers in other countries. To counteract this geo-
graphical disadvantage it is important to deploy personnel as effectively
as possible.
2. The use of very sophisticated and highly specialized machines calls for
a correspondingly high level of qualification on the part of the machine
operator. It therefore becomes increasingly necessary to deploy employ-
ees on the basis of their capabilities and their knowledge.
Successfully overcoming the challenges which arise from this calls for
effective solutions which reflect these requirements. The personnel man-
agement domain within an MES system provides tools which permit effec-
tive implementation of these tasks. A particularly important role is played
here by the seamless integration of the personnel component into the over-
all MES solution thereby giving a complete and comprehensive view of
the planning, the work flows and the results of production.
In addition to workforce planning, a company makes other requirements
of personnel management in the fields of security, time registration and
personnel management. Powerful MES systems also offer solutions for
these points which enable the corresponding tasks to be mastered elegantly
and at little expense.
200 9 Personnel management with MES
9.2 Staff work time logging
An important function of personnel management in an MES system is staff

work time logging, which in recent years has developed from managing
the attendance and absence times of employees into a control system for
personnel resources.
9.2.1 Tasks of staff work time logging
Staff work time logging is concerned with the three main aspects of time
registration, time management and short-term manpower planning.
Time registration
Instead of the old time clocks, computer terminals are now used for register-
ing the clocking-in/clocking-out times of the workforce. In addition, it is
also possible to input breaks and the reasons for starting work late or finish-
ing early. The terminal can also display up-to-date information about vaca-
tion days remaining, time credits or recent clocking-in or clocking-out times.
Messages can also be sent for employees to read at the terminal and these
messages can, for example, be displayed when the employee clocks in.
Time management
The task of time management is to ascertain the actual time worked by
rounding off the clocking-in and clocking-out times and debiting the work
breaks. Following comparison with the required work time laid down in
the work time model, it calculates the overhours or underhours, should this
apply. These can be paid out or collected in a time account. In addition to
time accounts, the vacation account is also maintained. The working hours
worked by the employee are posted by time management to pay types on
the basis of configurable payment rules and these are added up at the end
of the month and transferred to the payroll department. Here we under-
stand work time model in a broad sense which ranges from the familiar
day/shift time, via flextime to monthly, annual or even lifetime working
hours. With workflow management, procedures such as applying for vaca-
tion or correcting incorrect clocking-in or clocking-out events can be re-
produced without the use of paper. In addition, current overviews display
present and absent employees, trends in the hours worked and statistics for
times of absence.
9.2 Staff work time logging 201
Fig. 9.1. Overview of attendance and absence
Short-term manpower planning

Short-term manpower planning is concerned with which employee works at
what times and on which shifts. Here the occupational activity and qualifi-
cations of the individual employees play a major role. Once adequate man-
power for a shift has been secured, planning can go on in the next step to
determine at which work center or on which order the employees are to
work. Even when orders are planned in at the control station, short-term
manpower planning can be used to check whether the current order situa-
tion is covered by sufficient personnel with the corresponding abilities.
9.2.2 Time management in the MES or ERP system
While time registration is a fixed component of an MES system, time

management can often be carried out even in the ERP or payroll account-
ing system. The advantage of this approach is that an interface with the
payroll department is not required and integration into the general account-
ing and controlling departments is a simple matter. On the other hand the
advantages of using time management within the MES system include:
The attendance time determined can be compared with the work order
times reported in the PDA. This comparison is important for ensuring
that all of the hours worked by the employee have been recorded in the
PDA since these data are required for the controlling department or for
incentive payments.
Running time management within the MES system means that periods
of absence can be registered, incorrect clocking-in and clocking-out
events corrected and overtime approved on a decentralized basis by the
foreman using the interface familiar to him from, for example, PDA.
There is no need to install an additional workstation.
Short-term manpower planning requires that the scheduled work times
of the employees be held in the MES system. This makes it possible, for
example, to take the resource of personnel into account when planning
orders at the control station.
While payroll systems have a standardized interface for the transfer of
salary types, interfaces for inputting work hours performed from the
time management system to allow comparison with the PDA and with
scheduled work times or absence times for the purpose of short-term
manpower planning will in most cases need to be implemented on a pro-
ject-specific basis.
One example of an ERP system which includes a time management func-
tion is SAP-HR. When using SAP a decision must be made as to whether
the MES system should be used as a subsystem for registering clocking-in
and clocking-out events or whether the time management function in the
MES system should be used. In either case the HR-PDC interface is used.
9.2.3 Flexibilizing work hours
Trends like “just in time” are concerned with reducing the costs of stock
keeping and of current assets by always manufacturing exactly what the
customer wants at that precise time. A consequence of this is considerable
fluctuations in capacity loading in production and in many management
departments.
In addition, seasonal variations in the demand for particular products re-
sult in a different distribution of labor requirements. At the same time,
however, personnel costs take up a high proportion of production costs
which means that preventing unproductive wages is an increasingly impor-
tant task of personnel planning. These and many more reasons besides
make an increasing flexibilization of working hours necessary.
One simple way of satisfying this requirement is to introduce a time ac-
count. Irrespective of whether the employees themselves determine the
9.2 Staff work time logging 203
movements of their time account on the basis of the amount of work avail-
able or whether building up or cutting down the hours in the account is
controlled by the company, a time account provides a way of matching the
labor deployed to the current demand.
In line with this, different types of accounts are used. If the employee
himself is responsible for running his account, this type of account is called
a flextime account. For their part, companies use the flextime account for
controlling additional work and shortages of work. In the case of
a seasonally fluctuating inflow of orders, an annual account can be used for
ensuring that the work time evens out over the course of the year. A high
demand for labor sustained over a relatively long period can be covered in
a lifetime working hours account. With this type of account, the additional
hours worked can give the employee the opportunity of retiring earlier.
Any overtime which is required can be worked before or after regular
working hours. In the case of companies which are already working three
shifts so as to achieve a high level of machine utilization, additional shifts
can be planned in at weekends.
It is, however, still possible to use flextime with three-shift operation.
What matters to production is not that the employees start and finish their
work at particular times but that enough personnel are present to operate
Fig. 9.2. Flexible shift-day type

the machines. When there is a flexible shift handover (which is agreed by

consultation between the employees involved), both the requirements of
the company and also the wishes of the employees can be satisfied.
9.3 Motivation and personnel management
A study conducted by the Gallup Organization came to the conclusion that

in Germany in 2002 only 15% of employees were motivated in their work.
67% of those in employment went to work without any motivation and
18% actually worked deliberately destructively. Comparisons with previ-
ous years revealed that the number of motivated workers was falling. This
is shocking when you are aware of what potential is available in motivated
workers and when you imagine what would happen if some of this power
were even directed against the company.
The question therefore arises automatically as to how the motivation of
the employees can be increased. However, many managers are not aware
that it is their job to release this potential. Management seminars are re-
quired on all management levels to clarify what this task means.
Various motivators exist for employees. One way of improving motiva-
tion is to transfer responsibility to one’s employees. This can, for example,
be done by introducing flexible working hours. Here the employee is him-
self responsible for matching his work hours to the volume of work avail-
able and can in addition input his own private preferences as well.
The next management task emerges from this directly: before the em-
ployee can successfully perform the tasks assigned to him, goals need to be
defined and results checked. Measurable target quantities are required for
an objective evaluation. With an MES system in place, order data and ma-
chine data are registered which can be used as these target variables. The
manufacturing scorecard (Kletti and Brauckmann 2004) serves as a tool
for visualizing the targets and the progress currently made towards achiev-
ing those targets.
9.3.1 Performance- and bonus-based wages
Remuneration can also be used as a motivational factor for the employees.

Specific targets are set and when these are related to the actual work car-
ried out it is possible, for example, to determine a percentile performance
level which in turn determines the amount of a bonus.
Although individual piecework, in which the performance of the indi-
vidual worker determines that worker’s bonuses, at one time tended to be
the standard approach, nowadays group bonuses are preferred in many
9.3 Motivation and personnel management 205
Fig. 9.3. Performance efficiency curves
companies. One advantage of group-type performance-based remuneration

is that this approach encourages the employees to work together. In addi-
tion it is possible to include in the bonus even those employees such as
charge-hands or lift-truck drivers who are only indirectly involved in the
production process.
It is primarily the order notes which form the data foundation for deter-
mining the performance payments. However, in an MES system, machine
data, data from staff work time logging, or quality data from the CAQ
module can also be input into the performance wage without the need for
interfaces. In comparison with a performance bonus, in which a compari-
son is made of target and current times, a utilization bonus also takes sta-
tistics into account, such as the number of OK pieces and the number of
scrap. Utilization bonuses thus make sense when the actual time is primar-
ily determined by the machine work cycle and the worker has virtually no
influence on it.
Another example of integration of performance-based wage calculation
for the purpose of time registration is the comparison list with which
a check can be made to see whether the total attendance time of the em-
ployees has been posted to the orders and whether the underlying data are
complete for calculating the performance wages.
Since there is great variation in collective agreements in the various sec-
tors of industry as well as regionally and since there are great differences in
how performance wages are calculated in individual companies, the per-
formance-based wage calculation function requires a great deal of flexibil-
ity and needs to be readily adaptable to payment rules. The performance
efficiency curve provides a graphical overview of the course of perform-

ance in the individual incentive payments groups.
9.3.2 Employee qualifications
Before employees can successfully perform their duties they must acquire
the necessary knowledge and capabilities and also expand them by further
training. Further training also shows the employee that he is worth the
corresponding costs incurred by the company and this boosts his content-
ment and motivation.
It is precisely the continuing trend towards automation in production
which calls for constant further training of the operating personnel. It is
only by specializing in particular task areas that it can be ensured that these
complex machines and systems are being operated correctly and thus
reaching a high level of productivity.
What is important to the company is that its investment in its employees
is implemented in a way which yields a profit. For this reason one of the
tasks of the MES system is to register employee qualifications and display
them close to the production line. For example, a plausibility check is car-
ried out when an order is opened to ensure that the person handling the
order has the necessary qualifications. This procedure will improve the
quality expected in the finished products and also increase the motivation
of the employees since they are not be used for tasks for which they lack
the requisite knowledge or skills.
9.4 Short-term manpower planning
Current studies show that around 60–70% of all companies use a standard
spreadsheet program as a tool for planning the deployment of personnel.
Allocation of which employees will work on the scheduled orders at which
work centers is also frequently carried out using wall charts.
The problem with these methods is that data such as the vacation appli-
cations of employees have to be maintained in several locations. Redun-
dant data storage of this kind means unnecessary extra expenses and re-
sults in individual data statuses drifting apart. This in turn is the cause of
errors in personnel planning and the economic efficiency of production
drops due to a lack of personnel or to an oversupply of personnel. Al-
though the data are maintained in several locations they are often not
available in other important locations. For example, when planning in the
orders it would make sense to be able to compare the planning against the
labor capacities available.
9.4 Short-term manpower planning 207
Successful presentation of the requirements relating to planning person-

nel deployment calls for several tools which can display labor capacities
from different points of view and interdependencies between them.
9.4.1 Vacation and shift planning
To be able to process vacation applications from his staff the supervisor must
have an overview showing whether enough personnel are still available for
a controlled process flow. In this regard it is not sufficient to take into ac-
count the number of employees who are scheduled to be available but the
jobs they perform and their time account balances must also be considered.
Fig. 9.4. Vacation and shift planning
While vacation planning is often carried out a long time in advance, shift
planning tends to be at medium or short range. The task of shift planning is
to ensure that the individual shifts are allocated sufficient personnel. Since
this is based solely on data from staff work time logging, empirical values
or target values from the ERP system will be used if necessary.
A vacation and shift planning module is used primarily by foremen and
shift foremen. For this reason this module will have to be operated intui-
tively and simple planning functions provided. The result of this planning
is the shift plan, which is made available to employees as a printout or in
electronic form or which the worker can call up at the terminal.
9.4.2 Checking labor capacities during detailed planning
The labor requirements overview shows employee requirements grouped

by qualifications. The actual requirements either derive from the orders
scheduled for a work center or can be defined permanently on the basis of
the work center. Opposite them, the screen shows the scheduled labor ca-
pacities together with the qualifications assigned to them. This results in
a display which shows coverage of labor requirements, deficiencies in
personnel, and excess coverage of requirements.
Since an employee may have several different qualifications, the labor
requirements overview is used under different aspects:
When individual qualifications are displayed, a check can be made to
see whether enough workers with the corresponding capabilities have
been planned in.
The totals view for several or for all qualifications shows whether the
number of employees is sufficient for processing the scheduled orders.
This is a necessary check since the individual view does not take into
account the fact that several qualifications can be assigned to the em-
ployees.
When the production control station is used at the same time, the labor
requirements overview can be used for evaluating the current planning or
Fig. 9.5. Labor requirements

9.4 Short-term manpower planning 209
a planning simulation on the basis of the labor capacities. This shows the
advantage of an MES system in which individual modules can be mutually
integrated without interfaces needing to be defined or implemented.
9.4.3 Allocating employees to work centers
The personnel assignment module is used for assigning employees to the

work centers. In a similar way to the labor requirements overview it de-
termines what workers with particular qualifications are needed on the
basis of the orders or this is defined directly at the work center.
The bottom part of the personnel assignment screen shows what em-
ployees are available while the top part shows the work centers to be filled.
By selecting a planning profile the view can be cut back to a single plan-
ning unit with particular work centers and employees. When personnel are
assigned manually to the work centers, a plausibility check is carried out to
see whether the worker in question has the necessary qualifications.
Employees can also be planned in automatically. Here the workers are
assigned automatically to the work centers on the basis of their qualifica-
tions. If several workers have the same qualification, it can be determined
with the aid of a ranking scale which employee has the best command of
Fig. 9.6. Personnel assignment to resources and orders or operations

the capabilities required. With these data, the personnel assignment func-
tion attempts to identify the best plan possible whereby the work centers
are completely filled with the best qualified workers. The result of person-
nel assignment is a personnel deployment plan which is printed out for the
employees or which can be viewed at the terminal via an information key.
9.5 Security in the manufacturing company
The terrorist attacks of September 11, 2001, on New York and Washington
changed the world. One consequence of these events is that many compa-
nies need a higher level of security. But there are yet other reasons for
monitoring the entrances to and exits from company premises and also the
doors between different rooms inside company buildings:
Unlike conventional locks, with an access control system (ACS) time-
based authorizations can be assigned. This means that it is possible, for
example, to ensure that certain employees will only be allowed access
during working hours on weekdays while other employees will have 24-
hour access to their place of work, and even at weekends as well.
With a conventional lock, a lost key often means that the entire lock has
to be replaced while with an access control system the lost ID card loses
its authorizations as soon as a new card is issued.
Logging of when employees enter is necessary, particularly in areas
where security is of special importance.
Checking authorization for particular rooms, factory shops and ware-
house areas and logging of accesses improves protection against theft
and pilfering. Even with respect to industrial espionage it will be neces-
sary to define which employees and visitors are permitted to enter which
areas.
In high-security areas, keys need to be protected against misuse. Here
the identity of the employee can be verified by an additional pin code or
by biometric features (a fingerprint, for example).
In the event of fire, a list of all employees currently on the premises
must be available so that it is possible to find out which employees have
not assembled at the muster stations.
Via the escalation management module, alarms relating to doors opened
without authorization or sabotage of the access readers can be passed di-
rectly to the employees responsible.
Installing a powerful MES system will cover these requirements. In ad-
dition, current information about the state of the individual access points
can be displayed at the security control station:
9.6 Outlook 211
Fig. 9.7. Security control station
9.6 Outlook
In 2004 the term “human capital” was picked by an independent panel as

non-expression of the year. Irrespective of whether this was a good or bad
choice, the expression does show the increasing importance of employees
to the company.
After many years in which financial criteria were primarily used for
evaluating a company, it is a new approach to include the employees with
their knowledge and their capabilities in the analysis. It necessarily follows
from the great importance of personnel that the personnel must also be
included in MES system as an important component.
Here it is especially important to regard tasks such as staff work time
logging, short-term manpower planning and access control not as individ-
ual disciplines but rather in conjunction with other modules, such as de-
tailed planning, for example. Accordingly the strength of an MES system
is that production can be considered from a large number of different an-
gles and thus a comprehensive overall image of production be obtained.
Literature
Kletti J, Brauckmann O (2004) Manufacturing Scorecard – Prozesse effizienter
gestalten, mehr Kundennähe erreichen – mit vielen Praxisbeispielen [The
manufacturing scorecard: designing processes more efficiently, achieving
greater customer orientation, with many practical examples], Gabler, Wies-
baden
10 MES with SAP
10.1 Motives
Due to its great popularity and high degree of standardization SAP has in
two regards a special importance among ERP systems on the market. In
the first place, developments for an MES vendor in the SAP environment
pay off due to the high level of market penetration; Second, SAP is one of
the few suppliers in the ERP environment who actively advocates an inde-
pendent MES system outside mySAP ERP in order to be able to offer their
customers vertical integration. It is precisely in the manufacturing envi-
ronment that a partner concept for so-called manufacturing applications
has been massively beefed up since mid-2004: the “adaptive manufactur-
ing” partnership leads all other efforts.
With this initiative and the corresponding publications SAP is clearly
demonstrating that for many industries and areas of application the use of
an independent MES is to be recommended to allow exploitation of the
full functionality of the SAP ERP and logistics solutions. On the SAP side
this depends on integration of the MES solutions of the partners.
The idea of integrating an MES system into the ERP world is gaining
a new importance at SAP and demands of an MES – and thus, of course, of
an MES vendor – a whole series of interfaces and integration technologies.
It is, however, of decisive importance to the SAP user – in other words, the
manufacturing company using mySAP – that he does not lose sight of
what is really necessary to secure the quality of the application. Here the
suitable technology itself should only form the basis of being able to build
an application. SAP offers a technology platform for implementing
a “wide” range of applications with the MES very deeply integrated into
the SAP world. SAP puts its SAP NetWeaver technology platform at the
center of these efforts. Accordingly, labels such as “Certified for SAP Net-
Weaver” initially mean only that the vendor in question is using the tech-
nology but not that any added value has been generated here in the applica-
tion itself.
The certificate “Powered by NetWeaver” aims at considerably more in
the direction of application. It confirms that a partner has integrated his
application on the NetWeaver platform into the SAP applications.
214 10 MES with SAP
It is very difficult for the user to separate technology and application, es-
pecially in the SAP environment. Lavish marketing campaigns on the part
of SAP and the SAP environment do not always make a contribution here to
increasing transparency. The technical terms and buzz words alone increas-
ingly compel the medium-sized manufacturing company to ask the ques-
tion: “what is the benefit for my company?”. The answer to this question is
the motivation behind what follows. We also look at the definitions thus
provided which relate to integration of an MES system into mySAP ERP.
10.2 Integration of the MES into the SAP environment

10.2.1 Development of the MES in SAP history
In the SAP environment in particular, the beginning of the 1990s saw

a simple feedback system, which was nothing more than a straightahead
data collector, being offered on the market as a production data acquisition
application (PDA) or subsequently even as an MES system. Frequently
these systems consisted or consist of a more or less complex feedback de-
vice combined with very simple interfacing software for SAP R/3. Follow-
ing data acquisition, the systems “deliver” the data to the R/3 system via
conventional data interfaces. Once systems of this kind are in service, their
structural shortcomings become evident. Due to their structure, these sys-
tems are not capable of preprocessing data or even carrying out more com-
prehensive plausibility checks. Via the acquisition mechanisms it was in
fact possible to replace only the manual records, the so-called workshop
recorder, with an electronic data recording facility. The lack of preprocess-
ing or plausibility checks for the data resulted in an unsatisfactory quality
of the actual data in the SAP system. The data had to be reprocessed to
improve the data quality. The absence of objectivity in the data which were
obtained in this way automatically gives rise to doubts as to the correctness
of operational parameters and control inputs for production “calculated” in
R/2 on the basis of data of this kind. Any attempt to get better data quality
while retaining the same system architecture will be bound up with high
costs for the manual maintenance of the data and for the IT infrastructure
required to obtain better system performance. Furthermore, the result of
this attempt was that the data acquisition/PDA system and the SAP applica-
tions above it – basically, merchandise management (MM) and production
planning (PP) – intermeshed so tightly that even minor changes in the pro-
duction process involved extensive modification of the software in the data
collection system, at the interface and in R/3. This period also saw the
emergence of approaches in which set-point and actual value status mes-
10.2 Integration of the MES into the SAP environment 215
sages were generated so as to avoid IT costs. Of course this meant that no

improvement in the planning data could be expected, nor even realistic
statistical cost accounting. For rigid production processes which have
reached a steady state, a manufacturing company can under certain circum-
stances dispense with continuously updated status messages about the qual-
ity of the production process. In an age of increasing customer-driven
flexibility this is no longer acceptable in a modern production line.
10.2.2 Requirements for an MES in the SAP system

environment
The consequence of this was that subordinated systems had to be given

a smarter design, in other words, brought closer to the process, with the
aim of improving data quality by means of plausibility checks close to the
process.
What close to the process means in this context is carrying out inspec-
tions reactively on the basis of the current production situation and the
control inputs from ERP (target dates, target quantities, inspection and test
plans) and reporting the results to ERP. These results trigger actions there
or, by supplying the user with the corresponding information, put him in
a position to be able to intervene in control.
The technical aim as regards IT is naturally to check the flood of data in
the mySAP ERP system by preprocessing it and thereby reduce the IT
costs for the SAP system. Examples of this include reporting milestones in
materials management (MM) while transportation of material together
with all material movements is secured in the MES, or accumulating quan-
tities and times and time-ticket-related status messages in SAP PP.
At the same time it is important that mySAP ERP and the lower-level
MES be adjusted to each other in such a way that no redundancy results. In
other words, the systems must be so “meshable” with each other that for
the user they represent a single across-the-board solution and the user, for
example, only needs to carry out maintenance of master date in one sys-
tem. The functions of the two systems should therefore supplement each
other and under no circumstances overlap. This is the demand for a dedi-
cated implementation in a manufacturing company.
A widely branched manufacturing company – in other words, a com-
pany which although it has a central IT department also has several pro-
duction locations which come under different sectors of industry – will
have another important requirement. The MES should be flexible enough
to be configurable to the different production organizations but still ensure
uniform integration with the central SAP system.
216 10 MES with SAP
Depending on the production organization or sector of industry, one

production location may need a shop-floor control function in the MES
system while another location does not need this function or it is available
in mySAP ERP.
10.2.3 Representation of levels in a manufacturing company
On the basis of this question, it is important first of all to structure the

processes and system functions which are found in a manufacturing com-
pany and to ascertain the system (SAP or MES) to which they can or must
be assigned.
In some very recent publications, SAP has defined the tasks and func-
tions of a manufacturing company under the aspect of their assignment
under the term MES. From these publications a levels concept can be de-
rived which presents the processes and functions. These functions are
grouped into levels.
Fig. 10.1. Functional levels in a manufacturing company
Level 1a: Corporate planning

On the topmost level are found the classic ERP functions such as sales
planning, capacity requirements planning, customer order management,
sales, and shipping.
Level 1b: Planning and material planning for production

Level 1b includes the functions for product planning, production flow
planning and materials management. This also includes the supply chain
management function which controls all logistical processing on corporate
and subsidiary levels as well as logistics between customers and suppliers.
This is to be distinguished from transportation management, or so-called
intra-logistics (technical logistics), in other words, material control within
the production department of the company, which is described below. On
this level too we also find the SAP applications of APO. Here the time
horizon for planning work is in all cases medium or long range.
Level 2: Production management

On Level 2 are found all of the processes which are largely used for im-
plementation of the production plans produced on the level above. This is
where flow of material and production itself are controlled.
On this level too are found functions and tasks such as reactive plan-
ning – in other words, production control itself, also referred to as shop
floor control. The time horizon here is short range.
Level 3: Automation
Depending on the industry and/or production structure, this level includes
functions which in the process industry/continuous production are largely
handled by process control systems. In discrete manufacturing these func-
tions for controlling the production process are for the most part mapped
on the level of production control (shop floor control). On this level we
also find not only all of the functions and processes in the manufacturing
company which control the machines and installations but also those
which are responsible for the exchange of information and control parame-
ters to and from the machine or machine group.
10.2.4 Corporate processes in mySAP ERP

and the MES system
In what follows, these functions and processes are assigned to the IT sys-
tem mySAP ERP and to the MES system. For those levels situated “out-
side”, this assignment is conspicuous. The functions on Level 1 corporate
planning are the classic disciplines of the ERP system and are covered by
mySAP ERP. Even those functions for production planning and for the
medium-range planning of materials and resources are for the most part
implemented consistently in mySAP ERP.
218 10 MES with SAP
The functions on Levels 4 and 5 are mostly to be assigned to the MES

system or should at least be capable of integration into an MES.
Control of the production process is carried out in the MES system
(process control function). This includes the classic data acquisition func-
tions and naturally also the integration of the vital technologies for con-
necting machines, machine groups and process installations. The funda-
mental requirement is that all of the data are made available for the higher
levels. This is the basis for ensuring the requirement for so-called vertical
integration is satisfied.
However, since it is more and more often assumed in the manufacturing
company that processes do not necessarily run in their entirety within
a single system but rather need to be supported vertically over several sys-
tem levels, in addition to the functions being assigned to one system
a “considerably more interesting” part of system integration is the “consoli-
dation” of functions from several systems into a single process mapping.
From the technical aspect of IT, this area of “overlapping functions”
largely includes the functions of Level 3 of the present model. Depending
on the production organization or sector of industry these processes can be
entirely implemented either in MES systems or in SAP systems. As an
alternative, however, and this does appear to be how things will be in the
future, they can be broken down into sub-processes and mapped into both
the SAP and the MES systems.
Fig. 10.2. Integration of manufacturing company processes into the IT landscape

Relevant processes in the MES system

As has already been mentioned, there are functions or processes which are
mapped in the MES either completely or even only partially. The connec-
tion between the MES and mySAP ERP must be so flexible that the fol-
lowing functions, depending on the application and the production organi-
zation, can be “switched on and off ” in a company.
Scheduling and sequencing, production control

While scheduling and sequencing in the sense of production control is, in
the case of quantity production, for example, carried out on the medium to
long-term basis – in other words, days in advance on the production plan –
there are some sectors of industry and production organizations in which
such plans are drawn up only just before production begins or which have
to be modified while production is in progress. The term “reactive plan-
ning” was coined to differentiate between these planning methods. This
term means the creation of an executable production plan which was opti-
mized with respect to production conditions at the time of its creation.
Reactive planning is necessary when, for example, different machine
groups and production equipment suffer from technical restrictions on
account of the materials being used. If the problematic properties of the
materials are not identified until production is actually under way, it will
be necessary to change the planning directly at the machine group or to do
the actual planning work or production control there.
One example of this is the steel industry. Due to the properties of the
material, planning changes are decided immediately before or during the
production process, something that can result in over- or undersupply for
the production order.
If this also affects other production stages which require the higher-level
planning systems such as the SAP modules PP, MM or APO, they will
have to be controlled via the systems affected. In this case it is the job of
the MES to supply the SAP modules with information synchronously or to
call up new planning requirements or even a new plan, or to have a new
plan prepared.
Transportation management
Depending on the manufacturing sequence and infrastructure of an indi-
vidual manufacturing company, the term transportation management has
some quite different meanings. Transportation management definitely does
not include the transportation of materials from one production plant to
another, to a distribution center or directly to the final customer. Normally
220 10 MES with SAP
these functions are handled within the SAP system by supply chain man-
agement. In certain production industries, such as the steel industry, there
are also great distances to be bridged as well. Between individual produc-
tion areas such as the blast furnace and the hot-rolling mill, transportation
logistics within the plant are an important and completely independent task
for supply chain management. The same also applies however to manufac-
turing companies which on account of their growth history have very diffi-
cult infrastructural conditions (parts of the plant separated by public roads,
parts of the plant at great distances from each other although at the same
location).
Here transportation management and transportation logistics belong par-
tially or completely to the production process and must be handled with
a similar flexibility as the production process itself. It makes sense in this
case to map transportation management as an independent logistics func-
tion within the MES system. The same is also true of the typical materials
arising during production (WIP = work in process). The intermediate mate-
rials thus created have only a “short life” and for this reason it is not neces-
sary to manage them in their own planning stage within materials man-
agement (MM).
In addition to registering and tracking intermediate materials in the pro-
duction process, a decisive role is played on the transportation manage-
ment level by the documentation of the creation process for customer end-
products. In the pharmaceutical, food and automotive industries, lot and
batch tracking down to the tracking of individual parts is becoming more
and more important. In the fields of tracking and tracing, SAP is providing
more and more functions in its industry-specific solutions, functions which
must however be integrated by the MES into the production process.
Quality management
It is increasingly true of all industries that quality management is not an
autonomous process in the manufacturing company but rather that it has to
be integrated into the production process itself: this is the so-called in-
process quality assurance. Employees in production itself should check the
quality of the product, correct settings which affect the quality of the mate-
rial or of the final product, or simply collect quality data. The typical ex-
pression for this is the worker self-check.
Support for this process requires that the data acquisition functions at
the machine or machine group also include the monitoring functions for
quality assurance. Control of this quality management function and ar-
chiving of the data does, however, come within the SAP QM. Whether
10.3 MES as an integrated solution in the SAP system 221
acquired data or events are relevant to quality assurance or to the product

documentation must be determined directly within the production process.
The production process facilitates everything required for in-process
product documentation. Transportation management and quality manage-
ment run on a single level within the MES system. At the time when the
data originated, links between product and quality data and also measured
values are created here on line.
Time management in production

In a company, time management up to and including calculation of wages
is a constituent part of the personnel management system and thus a part of
SAP HR.
It is possible to depart from this “rule” when performance-based wages
are to be calculated in a manufacturing company for the productive em-
ployees in production.
In this case it is important that data are preprocessed immediately the
data arise and are secured for data maintenance at a time close to the work-
flow. For example, if a foreman looks after personnel entries actually dur-
ing the current shift rather than a time administrator not doing so until the
next shift or even the next day, it will be possible to make a real-time
comparison between the personnel and quantities signals and also check
their plausibility. This means data quality and security for the production
process and also an appropriate and above all effective employee remu-
neration conforming to the product quality and productivity.
For companies in which performance-based remuneration plays no role
in production, it makes sense to map time management in the classic man-
ner within the SAP environment (HR module). This thus reduces function-
ality in the MES to the simple acquisition of time events such as “clock
in”, “clock out”, “break” or similar. But the MES will also have to satisfy
requirements relating to plausibility checks on employees in production. In
the interests of an overall solution it is also important that the system (SAP
plus MES) supports both alternatives.
10.3 MES as an integrated solution in the SAP system
The levels concept, which was described in the previous section, and
above all the overlapping of functions and processes which is envisaged,
calls for a flexible and scalable method of linking the SAP system to the
MES system.
222 10 MES with SAP
For this purpose SAP provides, via conventional interface technology

(in other words, the simple exchange of data between two systems), a large
number of methods and procedures which offer a wide range of possibili-
ties for linking up a lower-level MES system.
Since mid-2004 with the release of its product SAP NetWeaver, SAP has
been pursuing the goal of bringing together all existing integration proce-
dures in this product. SAP NetWeaver thus automatically plays a central
role in the integration of an MES system in mySAP ERP.
10.3.1 Importance of SAP NetWeaver for integration

of the MES
The aim is to implement NetWeaver as a kind of integrator for all applica-

tions in a company. It should be possible to swap round applications or
sub-applications as desired. This also means that mySAP ERP must auto-
matically break back down into individual applications (so-called services)
if it is to have the necessary flexibility as an application. According to an
SAP road map, it is not until 2007 that mySAP ERP will have full Net-
Weaver capability.
Since the NetWeaver concept satisfies the ESA* definitions, taken con-
sistently this also means that that the SAP applications themselves are
treated on an equal footing with the company’s other “non-SAP” applica-
tions. This adds a further significant dimension to the MES philosophy.
The MES is accordingly a collection of production-related services located
outside the ERP application but which, via a suitable system platform, as
described above, can be “woven” into a total application.
In this connection the META Group comments: “SAP NetWeaver is the
first viable product to support the Enterprise Service Architecture. All of
a company’s applications should therefore be integrated as so-called ser-
vices into SAP NetWeaver. The services will then be available to the user
via a uniform architecture and interface. The user himself will then no
longer actually see individual systems any more but only a solution which
maps its processes.”
According to a statement of the META Group, with its NetWeaver
product SAP is in competition with IBM and Microsoft. These latter have
the same strategy whereby efforts are being made, also on an operating
system level, to launch a uniform platform onto the market.
The cost on the IT side for introducing applications should drop mark-
edly in the future due to these strategies. For this to be possible, in Net-
Weaver SAP is providing a kind of development environment for its part-
ners with which workflows and solutions are implemented: the Composite
Fig. 10.3. Overview of integration scenarios in SAP NetWeaver
Application Framework. Among other things, it enables so-called cross-

applications to be generated.
The exchange infrastructure (XI) is available for the technical connec-
tion of systems, including the MES system, to SAP NetWeaver. This is the
communications level which all systems to be integrated in SAP Net-
Weaver use for communicating with each other.
For better basic understanding we will explain the terms “composite ap-
plication framework” and “cross-application”.
224 10 MES with SAP
Fig. 10.4. Schematic diagram of SAP NetWeaver
The Composite Application Framework

One important NetWeaver component for the future design of applications
is the Composite Application Framework. In SAP NetWeaver this devel-
opment environment should make it possible to represent the business
process as a workflow (guided procedures). This ideal state, provided it is
attained, would put the manufacturing company in the position of being
able to map all of its business processes in one system – the so-called SAP
Business Suite – by means of SAP NetWeaver. Irrespective of which appli-
cations are in use, they will experience complete integration via SAP Net-
Weaver. In this connection META Group no longer talks about ERP con-
sultants who introduce ERP systems but instead about “business process
designers” who, with the aid of the development tools provided in SAP
NetWeaver, design the processes of the manufacturing company directly in
the system. For this reason SAP has integrated products such as Master
Data Management and Business Warehouse into NetWeaver. With Master

Data Management, all of a manufacturing company’s data should be man-
aged centrally, irrespective of where the data are actually physically stored.
This approach goes a long way beyond a “central” database since this data
management application also contains the logical interdependencies and
access paths.
Cross-Applications (xApps)
The SAP definition from the literature for the cross-application can be
summarized as follows. A so-called cross-application links and aggregates
data over and beyond the production landscape. Information from different
processes, production lines and plant installations thus becomes more
transparent. The application package contains preconfigured contents (the
so-called iViews) as well as a direct integration with, for example, the
Dashboards and Alert Management from mySAP ERP.
For this, the services for data access, analysis and business logic are
used to connect up any sources of data in production desired such as, for
example, solutions for production automation and control or maintenance
applications.
The application package as put together allows all specialists involved
in the value chain to work together on questions which crop up about the
SAP Enterprise Portal and in any application of the mySAP Business Suite
and to take steps to solve the problem.
What this means for a manufacturing company is that for it to be able to
achieve optimum use of mySAP ERP in the future, an MES system must
provide the requisite functions in this environment so that when used in con-
junction with SAP, the user has a total solution for his production activities.
10.3.2 Interfaces with mySAP ERP applications
Basically with an implementation in the SAP environment the classic type

of data exchange between two applications – for example, between SAP
production planning (PP) or SAP merchandise management (MM) and the
lower-level MES – must be possible.
SAP provides the individual SAP modules in mySAP ERP with inter-
faces which are also based on NetWeaver technology. The lower-level
MES system transfers acquired data to the ERP via these interfaces and
loads the data needed for the user’s information and above all for control-
ling the MES from the SAP system.
The applications in mySAP ERP and in the MES system are linked via
the application interfaces.
226 10 MES with SAP
Fig. 10.5. Overview of application interfaces
With these interfaces, which are used at specific times to exchange in-
formation between the two systems, it is easily possible to connect together
two processes which run completely separated in two different systems.
We shall now go on to deal with the most important interfaces with the
ERP application. It is important that the MES supports the interface tech-
nology required. What is of decisive importance to the user, however, is
the content of the data exchanged via the interface.
Plant Data Collection (PP-PDC)

This interface is traditionally used for exchanging status messages, master
data and transaction data relating to production orders between mySAP
ERP and the MES system. Via this interface the MES system reports time
events or compressed data back to the SAP system in the form of time
tickets. In this way mySAP ERP is supplied in real time with the produc-
tion parameters. The usual operating mode for this interface in a lower-
level MES is reporting via time tickets. Here totaled or condensed times
and quantities are reported back on an order-related basis. Only in this way
is preprocessing of the data possible and load is taken off the SAP system
as far as the data quantity and the system performance of the subordinate
system are concerned.
Production-Optimizing Interface (PP-POI)

With the PP-POI interface, mySAP ERP makes it possible for the MES
system to read all master data and transaction data for material such as
bills of material, work center information and also planning/production

orders and warehouse stocks, and also to write modified information back
to the production planning system. This function is of special importance
when the MES is to perform shop floor control or reactive planning func-
tions. In this case, the POI interface is used on the one hand when sched-
uled dates are sent to the control components of the MES in the form of
milestones and on the other hand, following completion of plan optimiza-
tion, when the MES reports the changed target dates back to mySAP ERP
where the necessary “consequences” can be deduced from the date
changes.
Inspection Data Interface (QM-IDI)

This interface is used in the field of quality management. The MES system
reads via the interface the values required for quality assurance. This
means that the entire inspection process can be carried out within the MES
system and the measured values and quality information required for qual-
ity documentation reported back to mySAP ERP. It must, of course, be
possible for this very comprehensive interface to be scalably operated by
the lower-level MES. Depending on what form quality management takes
in the manufacturing company, the full range of functions must be avail-
able, from simple measured data acquisition to full implementation and
execution of the inspection and test plans specified by the SAP system.
Process Control System (PI-PCS)

A wide variety of control systems are in service in the process industry.
Control scenarios range from fully-automated installations controlled by
process systems to installations with a low level of automation which are
mostly operated manually. So that these installations can be supplied with
control information or can process messages received, SAP provides the
so-called PI-PCS interface.
With the PI-PCS interface not only can control recipes be downloaded
to the lower-level control system but process-related data can also be up-
loaded in the form of process messages. Order-related data are sent via the
PI-PCS interface instead of via PP-PDC.
The following data are passed on in control recipes:
Process and control parameters
Plain-language instructions for the installation operator in partially
automated or 100% manually operated installations
Information about process messages to be sent back
Process messages give information about
228 10 MES with SAP
The status of process orders

The consumption and production of materials
The status of resources
Selected process events
Business Application Programming Interface (BAPI)

If processes in the company are to be “woven” more tightly together, data
exchange between both systems will have to be more intensive. Should the
processes need to be adapted customer-specifically, this will frequently
mean adaptation being implemented in both systems (in MES and in SAP).
As the production process becomes more flexible, the connection between
the two systems thus becomes a burden. To enable more effective use of
the systems, SAP offers its business application programming interface
(BAPI) which makes it possible for sub-processes to be “detached” from
SAP so that they can also be used by the lower-level MES system.
The lower-level MES will then behave like a virtual user in the SAP
system. The advantage for the SAP user is that the MES is integrated by
applying familiar and thus reproducible procedures within the SAP. This
does require the MES to support and supplement the SAP functions in
such a way that a wall-to-wall image of the production process is possible.
For this reason, in implementation it is assumed that the MES vendor has
not only the necessary process know-how relating to the manufacturing
company but also the necessary familiarity with using SAP.
Customer-specific changes can be made in the MES by using this pro-
cedure without the need to make changes in parallel on the SAP side.
10.3.3 Integration of MES functions via the SAP portal
SAP’s Enterprise Portal pursues the goal of making information from vir-
tually any application available on the web. In addition to SAP there are
other suppliers of portal solutions on the market, such as IBM, for exam-
ple. However, by connecting the portal with NetWeaver and the ERP ap-
plication itself, SAP enjoys competitive advantages with companies which
are already using SAP applications.
Basically the SAP portal is thus an “application-neutral facility” which
is intended to display not only SAP content but also MES content.
For all functional areas in the manufacturing company in which the user
has no portal access or where there are key users or power users who need
more powerful functions outside the portal, there will be an additional
need for comprehensive MES applications which are available solely in
the MES system itself.
The SAP portal offers the user of an MES system two interesting inte-
gration methods. The first is the “manufacturing intelligence dashboards”.
These dashboards provide the user with navigation and alarm functions.
The second is the so-called “business packages”: complete MES applica-
tion packages which are normally a component of the MES system but
which nevertheless run in the SAP portal.
Manufacturing intelligence dashboards

SAP or the SAP partner provides a manufacturing intelligence dashboard
especially for evaluations and analyses in manufacturing companies. Based
on the SAP NetWeaver technology platform it enables users to receive
information from the MES system via preconfigured portals. The
dashboards help production employees to make informed decisions more
rapidly. SAP provides preconfigured roles for plant managers, production
managers, maintenance managers and quality assurance representatives.
In today’s fast-changing world of work the availability of relevant and
up-to-date information to group and team leaders and heads of department
is of decisive importance.
A wide range of functionalities is available, including connection to
production applications and data sources, the visualization and analysis of
production data and other data, KPI and alert management, quality analy-
ses, and event-based plant-SAP integration.
Via the KPIs (key performance indicators) production can access data
about, for example, completion status, asset capacity usage and scrap rates.
The so-called alert monitor sends warning messages (alerts) when there is
a drop below safety stock levels, or when the scrap rate exceeds a specific
limit value, or when an indicator for product quality points to a problem.
The MES sends event notifications when, for example, there is a change in
the order status, when a system fails or when there are quality problems.
This information is then shown on the manufacturing dashboard.
The main application in the manufacturing environment is on the man-
agement level where current information is made available. Employees in
production need detailed up-to-date information and thus need access to
detailed MES functions.
For this the dashboard provides the important drill-down function. This
allows production employees to “branch off” directly into their customary
MES system environment. A genuine integration into the SAP user inter-
face thus takes place without functions which are already present in the
MES needing to be “reprogrammed” into mySAP ERP.
230 10 MES with SAP
Business packages
SAP offers various applications and services in the form of user- and task-
oriented business packages. In addition SAP partners can offer their own
business packages in the SAP portal. They are based on SAP products and
applications from MES partners. Essentially the packages in the manufac-
turing environment include information and workflows for the manage-
ment level in production.
The business packages are a collection of so-called iViews (interactive
views). Interactive views are independent software modules which insert
themselves into the SAP Enterprise Portal and thus provide the user with all
basic features (such as role orientation and the authorization concept). The
iView thus offers a way of forwarding information (content) directly from
the MES system to the portal user or recording it in a predefined workflow.
The iView itself is however a constituent part of the MES system.
10.4 Support for SAP’s Adaptive Manufacturing initiative
At SAP the term Adaptive Manufacturing has since 2005 primarily stood
for activities which should make it possible for the mySAP ERP user to
use MES functions.
With its associated partner initiative, SAP is thus informing its customers
that for an optimized use in production mySAP ERP can be supplemented
with an independent MES system or in the case of some industries must be
thus supplemented. SAP thus creates for itself a clear market advantage since
the SAP user has functions from executable MES systems at his disposal and
the SAP application can thus adapt itself to the sometimes very heterogene-
ous manufacturing environments of different branches of industry.
With this initiative SAP is in addition pushing partnering and is linking
this initiative to use of SAP NetWeaver. Qualified partners are being sought
who can offer SAP customers a powerful MES system. In order to clearly
indicate to SAP customers as well that these partners are qualified, SAP of-
fers these partners the opportunity of acquiring the “Powered by NetWeaver”
certificate.
The following criteria are relevant to the manufacturing company select-
ing an MES system to run under SAP.
10.4.1 Scalability of the MES solution
Before the necessary flexibility can be achieved for an application, the ar-
chitecture of the MES system must ensure that an MES is scalable beneath
10.4 Support for SAP’s Adaptive Manufacturing initiative 231
mySAP. This also applies in the case of installation in a manufacturing

company since the requirements made of an MES will be entirely different,
depending on the production area. In production areas with a considerable
level of automation, such as injection molding, the emphasis is on the tech-
nological interfacing of machines, starting with data acquisition of quanti-
ties or malfunctions and process parameters and including the transfer of
machine settings. In a production area which makes intensive use of labor,
such as the assembly line, what is important is registration of times and
displaying screen information such as assembly instructions. These two
applications require different data acquisition technologies.
In addition the production process itself must be in a process of perma-
nent self-adaptation, First, as the result of technical optimizations of proc-
esses but Second also due to ever more dynamic changes to the product
itself combined with continually declining lot sizes.
The dynamics of the production process in a company means that the
MES system must be able to adapt itself and thus be scalable technically:
Dynamic expansion capability of the IT infrastructure due to the sys-
tematic use of standardized components as operating system, database,
and network technology
Support for interfaces commonly used with the SAP applications (see
Sect. 10.3.2)
Integration into SAP integration scenarios in order to make possible
a need-oriented distribution of information within the company (see
Sect. 10.3.3)
User-adaptable MES user interface for generating the user’s own evalu-
ations in production
10.4.2 MES for horizontal integration
To ensure that an MES system can guarantee future-proof service within

a manufacturing company, functions must be available which secure hori-
zontal integration for the application. Basically this means that compo-
nents for:
Order data acquisition,
Machine data collection,
Control station,
Material and production logistics,
Staff work time logging,
Performance-based wages,
Quality assurance,
232 10 MES with SAP
Access control,
DNC,
Process data,
Tool and resource management
must be present before a manufacturing company can be offered a global
solution covering the full scope of the application.
10.4.3 Interfacing on the machine and control levels
Another decisively important property with which the MES ensures that
mySAP ERP can be integrated into different production organizations and
branches of industry is its support for all common technologies on the
automation level. In addition to using standard components, the MES sys-
tem must be able here to interface with even very individually pro-
grammed process control systems, data collection systems or even with
machines and machine groups which continue to be in service with many
manufacturing companies. Only in this way can a wall-to-wall solution be
found for the company and a new set of island solutions be avoided. The
MES should on the contrary ensure that existing island solutions in pro-
duction can be integrated into the MES system and a homogeneous inter-
face with the SAP system be thus created.
An MES must provide the SAP user with the following common tech-
nologies and data acquisition standards:
RFID: Radio Frequency Identification

While in past years the use of bar code labels for identifying material, per-
sonnel and order documents has determined in-process data acquisition,
the RFID method is still gaining in popularity. Since the technology has
now become very inexpensive and due to the fact that the data carriers can
be written within the manufacturing sequence, RFID promises a very wide
range of applications such as, for example, tracking materials by using the
data storage medium as “electronic” labels. Naturally this depends on the
MES being able to provide the corresponding required application for this
technique.
OPC: object linking and embedding (OLE) for process control

The OPC communication specification, which is now supported by
a large number of manufacturers of production machinery and installa-
tions in the most varied branches of industry, is currently well on the road
to establishing itself as a full-coverage standard. For this reason it is es-

sential that an MES is able to use this way of reading machine, quality
and process data from machines and machine groups. In addition, control
information (so-called settings data) must be conveyed to the production
equipment from the ERP via the MES in some cases on an order- or
product-related basis.
As has already been mentioned, this functionality must be similarly
supported above all in the field of plastic manufacturing standards such as
Euromap E63 or manufacturer-specific communications protocols.
FDA and GAMP4 conformity

In addition to the technical standards already mentioned, the MES is also
of decisive importance in the implementation of U.S. Food and Drug Ad-
ministration (FDA) quality standards and the GAMP4 (good automation
manufacturing process) regulations derived from them as also the corre-
sponding European standards. This quality standard primarily requires of
food and pharmaceutical product manufactures that they validate the ERP
and MES systems used for production control and in production. In addi-
tion to the quality requirements which are made of manufacturers of the
ERP and MES software, this software must also ensure that the safety re-
quirements prescribed in the FDA’s Standard 21 CFR Part 11 are satisfied.
These are for the most part functional safety requirements which the soft-
ware must meet. Today the use of an MES application for a manufacturing
company which wishes to obtain an FDA-conformant validation is a basic
requirement if the corresponding costs are to be kept within a reasonable
framework.
10.4.4 Examples of the integration of MES and mySAP ERP
In the SAP environment in particular, it is important for the benefits of

application to the manufacturing company that the technical requirements
be separated from the actual benefits of using it. To make this clearer, the
most important of the aforementioned possibilities will be summarized
below in an application example. The idea behind this presentation is to
compare the indicated technological possibilities with the corresponding
application benefits.
This simple example concerns a wall-to-wall integration scenario in-
volving, on the one hand, the MES system HYDRA from MPDV and, on
the other hand, mySAP ERP.
The MES has a complete order data and machine data collection capa-
bility. To enable the MES to carry out order data acquisition and shop
234 10 MES with SAP
floor control it is interfaced with mySAP ERP via the application interface
PP-PDC. As has been described in Sect. 10.3.2, order inputs are trans-
ferred as a stock of orders to the MES via the download function.
User-specific information is read directly in mySAP ERP. In the present
example, the MES manufacturer employs a module he has developed him-
self and which SAP has certificated with the “Powered by NetWeaver”
label. The order data are registered, in some cases aggregated, and then
sent back to mySAP ERP via PP-PDC. Material movements are also regis-
tered in the MES system, with the work in process (WIP) materials not
only being registered in the MES but material movements visualized. Mes-
sages are sent to SAP materials management (MM) only at the predefined
milestones (lowest production levels). This means there is demarcation
from SAP materials management (MM) and from so-called transportation
management and thus on the system side an optimum supplementation of
SAP by the lower-level MES. Should a machine standstill or operator in-
tervention make a maintenance measure necessary, the corresponding
maintenance job will be initiated in the PM module directly by using
a BAPI. Whether registration of the PM order, in other words, aggregation
of the times is effected by an MES function (because, for example,
a machine data collection function is already running at the work centers
or machines via the MES system) or whether these times are input manu-
ally via mySAP ERP functions depends solely on what IT infrastructure is
present or on the user’s organization. What is important for the flexibility
is that the system configuration implemented and shown here supports
both alternatives alike as options.
Alongside the classic functions of an MES system, in this example the
SAP user has the following additional functions at his disposal and in this
example they have been realized on the basis of the NetWeaver technology.
Manufacturing cockpit
Since machine data collection is now running almost completely as an
application in the MES but certain information is to be available through-
out the company, this information is offered to users at the SAP interface.
Depending on what form the SAP system takes, this should take place at
the SAP GUI or in the SAP portal (see Sect. 10.3.3). In the present exam-
ple the user is provided in the SAP portal with a status overview of all
machines, machine groups and work centers.
Fig. 10.6. Machine overview on the web
Manufacturing Master Data Control (MMDC)

MMDC stands for a continuous process of improving master data. It is
important, especially for flexible production processes which are subject to
constant change, for permanent comparison to be made between the
planned required values and the actual values. The classic approach is for
this target/actual comparison to be supported order-specifically either in
the MES or in the ERP by the corresponding analyses. These analyses are
however used exclusively for classic statistical cost accounting. In many
cases what is missing entirely is feedback of this information in order to
improve the planned values. These plan inputs form the basis not only of
production planning but also of corporate planning as a whole. The job of
MMDC is not only to support this control loop but also to make it a man-
datory procedure for users.
With the aid of MMDC a control process is set up which for all orders
collectively compares the plan inputs from the work plan and the improved
target values obtained from the actual data. To secure the control loop,
deviations of this kind are displayed as a sort of to-do list in an overview
for the user.
The appropriate employee must work through this list assigning every
deviation to its cause.
236 10 MES with SAP
Fig. 10.7. Control loop for optimizing the manufacturing master data
Fig. 10.8. Target/actual comparison of the plan data

Tracking targets in manufacturing: the manufacturing

scorecard
The manufacturing scorecard is a method developed by MPDV Mikrolab
GmbH for system-supported definition of targets in production and track-
ing the degree to which they are being or have been attained. In the SAP
environment this is a typical example of the application of key perform-
ance indicators (KPIs) in a manufacturing intelligence dashboard. The
target in question from the manufacturing scorecard module is saved to the
dashboard. An overview of the defined targets and their corresponding
fulfillment levels is displayed in the so-called KPI watch list on the
dashboard. If detailed information needs to be accessed, branching off into
the MES system is recommended.
Fig. 10.9. Monitoring target achievement by means of the manufacturing score-

card
238 10 MES with SAP
Interfacing with the automation layer

As regards interfacing with machines and process plants, the MES in this
example supports modern technologies such as OPC (see Sect. 10.4.3).
What is of decisive importance is that the MES implements standardiza-
tion at the machine interface for the process level in order to be able to
integrate what is generally a heterogeneous control environment and with-
out having to implement a large number of proprietary interfaces with the
SAP system.
In the present example, along with the product the manufacturer has
supplied the corresponding process communication controller which
makes technologies available for the virtually standardized interfaces (as
described above) with the SAP system and with the machines and process
plants. These technologies include:
OPC
Direct connections to control systems such as Siemens S7
Digital I/O contacts for quantity counting and fault signal acquisition
Drivers for field bus systems, such as Profibus
Drivers for machine control networks
Direct connection to weighing devices or complete weighing systems
Fig. 10.10. Connection of the automation level

10.5 Summary 239
10.5 Summary
The MES concept is becoming increasingly important in the SAP envi-

ronment since SAP is clearly communicating to users of its products that
mySAP ERP is best integrated into the increasingly flexible world of pro-
duction via an independent MES system.
With SAP NetWeaver, SAP intends to provide the technology platform
required for this. Some of the technologies are still under development and
market penetration will take some time yet. Until then it is however a mat-
ter of using existing technologies to meet the present demands of users and
of using an MES which, although it will support the future-proof Net-
Weaver application, can even now demonstrate its powerful capabilities in
the application while making use of the current integration technologies
available.
The main thing for the SAP user is that, in addition to the technological
incorporation of the MES system into the SAP world, the MES has the
necessary flexibility with respect to the application and also supplies the
complementary functions for production required by the mySAP ERP.
Also of decisive importance here is that when installing the MES or my-
SAP ERP the consulting partners have the requisite process know-how
relating to production procedures in the company.
11 MES in plastics processing
11.1 Special features of the plastics industry
The plastics industry, especially its discrete forms of manufacturing, has

for historical reasons been a pioneer in the fields of production data acqui-
sition, detailed planning and quality assurance. The networked philosophy
of an MES system gives considerable advantages. In this important branch
of industry machines and tools are at a high technological level and the
factories are fitted out with modern equipment.
Processes used in this industry include injection molding, blow-
molding, extrusion and also special types of processes derived from these.
The plastics production department is usually connected to other auto-
mated production areas. In many cases the final products consist of a com-
bination of the components plastic, metal and rubber. Here the advantages
of an MES system can also be leveraged in other branches. Punching and
compression molding and also all cycle-controlled automatic machines can
be integrated into the system without any problems and this in turn deliv-
ers further advantages for the entire production segment.
As to the question of increasing economic efficiency, in many cases the
main focus of discussion is investment in the machine park and in tooling.
A closer examination will however reveal that it is considerably more eco-
nomically efficient to improve the planning and to precisely record and
evaluate all reasons for malfunctions and scrap than to attempt to achieve
a higher return on investment by technological means. The objective is to
achieve better utilization of the existing machine park and improve quality,
and by taking this road reach higher efficiency. An MES system with its
functions of the electronic control station, production data acquisition,
machine data collection, tool and material management brings transpar-
ency to production and increases economic efficiency. In this regard
Sect. 11.11 provides a detailed calculation which takes into consideration
the various influencing factors.
Use of MES systems will always be particularly effective when the fol-
lowing conditions are met:
Possibility of automatic data acquisition directly at the machines
Automatic operation
242 11 MES in plastics processing
Presence of a relatively large number of machines of the same type

Manufacturing using high-investment machines and tools
Operation 24/7
Requirement for high utilization ratio and percentage utilization
Production of high quantities
Requirement for “just in time” delivery capability
All of the conditions just listed are met in the production of plastic com-
ponents by injection molding. Important areas of application in the plastics
sector include:
Automotive industry
Engineering components
Packaging
Medical technology
Electrical industry
Products in the plastics sector are complex, produced in large quantities
and must satisfy a considerable number of requirements relating to quality,
value for money and delivery reliability. Since technologies, machines and
tools have already reached a high standard, at this point only evolutionary
improvement possibilities are available. It is therefore much more efficient
to ensure with the aid of an MES system that production is running with
a high utilization ratio, a low scrap rate and high quality.
11.2 Usable MES modules
All MES modules can be used in the plastics processing industry. The
modules will be referred to below using the terminology provided in VDI
(Association of German Engineers) guideline VDI 5600.
Table 11.1
VDI guideline Plastics
Detailed planning and control Control station
Material management Material management
Operating resources management Tool management
Personnel management Staff work time logging
Data acquisition and processing Production data acquisition
Interface management Interfaces with ERP/PPS/payroll
Performance analysis Analyses
Quality management Quality assurance
Information management Management information
11.2 Usable MES modules 243
An integrated deployment of an MES system delivers the benefits in

particular of the interactions between the different modules which permit
data, once acquired, to be processed in different modules and the corre-
sponding action taken on this basis. This will be demonstrated here via the
example of one of the responses to scrap processing.
Fig. 11.1. MES modules
The scrap is detected and registered in the system quantitatively together

with the relevant scrap reason. In the QA system this scrap reason is input
into the analyses and statistics and on this basis the necessary action is
taken. The quantity is reported to the control station and from here the cor-
responding secondary finishing is arranged and all consequences for subse-
quent orders arising from this extended processing time are displayed
automatically. Material management checks to see whether the correspond-
ing amount of material is available for secondary finishing. In the tool
management domain the faulty parts are classified under the corresponding
tool: this makes it is possible to investigate to what extent the tool was re-
sponsible for the scrap. Of particular importance is an economic analysis of
the faulty parts which is sent via the interface with the ERP/PPS system.
This puts the ERP/PPS system in a position to determine under real-time
conditions the financial expense caused by the quality problem.
11.3 Control station
Use of a control station is particularly effective in plastics processing. From

the requirements in the master data it is possible to calculate exactly the
duration of the job on the basis of the data for quantity, set-up time, cycle
time and mold cavity. Reference is made to the plant calendar to determine
what capacity is available. Here, depending on the specific case, it is even
possible to take part- or machine-specific shift models into consideration.
The functions run in real time at the press of a button and any change is in-
cluded immediately. The sheer number of machines and orders active in
operation means that inputting this information manually is just not possi-
ble. To understand why this is so, consider a production facility with 30
machines and with each machine processing five scheduled orders. This
means a total of more than 150 orders which would all have to be calculated
through in the planning and then recalculated every time there is a change.
On the basis of its data a control station can perform functions which are
considerably more complex. By referring to status messages it can take
into consideration whether a tool is actually available. It can use material
requisition to display a favorable color sequence and can also at the same
time check to see whether non-mandatory maintenance intervals will fall
within a production cycle.
The advantages which paperless planning has over the conventional
procedure are obvious. The control station processes all information in real
time and for this reason the planning background will always be up to date.
Fig. 11.2. Control station with capacity profile

11.4 Acquisition of machine and production data 245
Graphic support makes planning at the control station considerably more

simple than working with a great quantity of paper documents which all
have to be laboriously gathered together every time replanning is carried
out and then rewritten entirely. Since the control station has the ability to
make suggestions and, if the situation so requires, can also issue warnings,
incorporation into planning is made much easier. This advantage is par-
ticularly useful when there are personnel changes or if a planner becomes
unavailable at short notice.
The control station displays the sequence of orders in the form of a bar
diagram. The corresponding loading graph shows at what time free pro-
duction capacities are available and where overloading makes replanning
of operations necessary.
11.4 Acquisition of machine and production data
Machine data collection (MDC) is of special importance to planning. Since

any planning is only as good as the actual circumstances on which it is
based, one of the essential foundations of neat planning is the automatic
provision of quantities. Since precise figures for the number of parts pro-
duced are supplied fully automatically by the PDA part of the MES sys-
tem, planning has a high level of actuality and of quality.
Planning benefits extensively from MDC. In addition, more information
is collected manually via PDA (production data acquisition) and input at
terminals in the factory. This includes set-up and servicing times and also
reject numbers. This direct acquisition at the terminals is more certain,
more up-to-date and associated with considerably lower costs than manual
records which then have to be forwarded and subsequently input into EDP
systems. Inputting immediately creates a real-time reference and, if so
desired, even a reference to an individual can be created via confirmation
by card reader. The electronic method of acquiring and transferring data is
far superior to manual handwritten records as regards accuracy and effi-
ciency. Companies which still work manually are usually aware of how
weak the data framework is which forms the basis for discussions about
utilization ratios and scrap rates.
Data acquisition stations may be either special terminals at the machines
or PC computers with a Windows interface. These terminals can be used as
individual or group terminals. They have a graphical user interface and
functions are launched by touching on-screen symbols (touch screen). Cor-
responding to the application in question, operation can be configured to
suit different requirements.
Reader stations for the identification of operators, materials or batches

can be connected. Here the full range of options can be used (magnetic
card, bar codes, chip card, RFID, and so on).
11.5 Connecting the injection-molding machines
There is no doubt that machines used in the plastics processing industry

can be regarded as the ideal partners for machine data collection. There are
various types of integration and here it is an advantage that basically any
machine, irrespective of model, manufacturer or age, can be connected in
a straightforward manner. The following possibilities are available:
Cycle signal
Cycle plus additional further digital signals
Host computer protocols via field bus systems
Euromap 63 as defined standard for injection-molding machines
OPC as machine integration standard in the Windows environment
Fig. 11.3. Connecting injection-molding machines via cycle signal
One very simple method with a very favorable cost/benefit ratio is con-
nection via the cycle signal which is available at every machine. This sig-
nal permits automatic detection of the following:
Machine running/stopped Signal received/not received
Machine running too fast/too slow Comparison with required cycle time
Quantity produced Cycle x mold cavity
11.6 Visualization and evaluation 247
In parallel with this, the reasons for standstills and numbers of scrap are
acquired and recorded at the terminals. The status of the machines is thus
easily documented and the information is available in real time for the
corresponding analyses.
This type of data acquisition is in all respects superior to the use of con-
ventional aids such as pen and paper. Manually prepared records come
nowhere near the quality and currentness of data automatically and unerr-
ingly acquired by an MES system. Not only that but the cost of manual
data acquisition is considerably higher. In the present-day production envi-
ronment no one would dispute the need to collect data from operations. In
this regard let us quote a sentence from a conference paper:
“Manufacturing without production data is like driving with a wind-

screen you can’t see through.”
11.6 Visualization and evaluation
The huge amount of information flowing into an MES system requires

preprocessing to allow the operator to work comfortably with the system.
For many application cases, visualizations and graphical evaluations are
available. Alarm functions and status changes can be very prominently
displayed by means of color coding. The color “green”, for example, indi-
cates that everything is proceeding within the permitted limits. “Yellow”
indicates a warning function while “red” means that the permitted limits
have already been crossed. The operator can plan his actions correspond-
ingly and access further analyses for the critical cases. Pie diagrams, bar
diagrams and even plotted graphs are available. The use of numerical out-
puts, which are controlled via database selection, allows faults to be traced
back successively to their origin. A report generator is available for prepar-
ing one’s own analyses and reports. By default the export function in Excel
is also available, allowing specific reports to be prepared on this basis.
Figure 11.4 shows a typical display.
The analyses are used for investigating the causes of faults and for
documentation purposes. In addition it is however necessary to have pro-
duction under control at all times. The graphical machine park is used for
this and gives a view over production via the monitor screen. The shop and
its machines are shown in graphic form with colored displays which not
only indicate warnings but also show the corresponding statuses. The user
can generate the display easily and also modify it when machines are re-
tooled. Production can be viewed from any location via the network and via
the internet. By clicking on a machine, more information can be obtained.
Fig. 11.4. Distribution of reasons for faults
Fig. 11.5. Graphical machine park

11.7 Connection between quality assurance and process data 249
The appropriate protective mechanisms are in place to restrict access to

authorized users only. With this the possibility of making value processes
measurably transparent is provided for the first time by an MES: only what
can be measured can be changed.
During the course of the increasing orientation of work towards the
process result there is a greater need for evaluation of the effectiveness of
action taken. The result of this in practice is for the measured variables
incorporated in operational target agreements to be presented in reviews
not only as the levels which have currently been achieved but also in the
form of historical curves. While statistics do not normally have an ad-
dressee, reviewing relates specifically to the employees and their perform-
ance. It is therefore generally true to say that a company cannot become
process-capable until statistics have been globally replaced by reviewing.
The graphic machine park provides a rapid overview of the machines
and of productivity. Simple program tools are provided to allow every
operator to put together his particular machine shop.
11.7 Connection between quality assurance

and process data
One particularly interesting application in the MES field ensures that quality
assurance is connected to the process data which are obtained directly from
the machine controller. It should be recalled at this point that in production
important material properties come into existence during the process. In
addition to basic properties of the molding compound, factors such as tem-
perature, pressure, air humidity, drying level and so on play an important
role. The quality assurance which follows can be set up on two foundations:
First, by the objective characteristics which are registered or measured in
a step which follows production and, Second, by the influencing variables
which are documented by recording of the process parameters.
Monitoring the mold temperature in the case of thick-walled moldings
may serve as an example here. Once the temperature falls below a critical
value there is a risk of voids forming. Process data acquisition allows tem-
perature values to be monitored and action taken immediately there is
a deviation from set-point. A problem of this kind can only be analyzed at
high cost using conventional measurement techniques or involving de-
struction of the piece. The situation is similar with safety-related moldings
as regards the clamping force and its duration.
Process parameters can be recorded in all machines with a modern con-
troller. This kind of monitoring of selected values can be a major factor in
obtaining information which it would be very difficult or even impossible
to obtain during the course of an assessment at a later stage. Regarding

costs, automatic parameter monitoring methods are particularly advanta-
geous. Since in many cases the interfaces for PDA and DNC are already
present, this opens up a highly interesting possibility along the lines of:
“Make quality instead of checking quality.”
The information in the MES system guarantees a production environ-

ment on which the quality needed today is based.
11.8 Tool making
There are two starting points for installing an MES system in the tool mak-
ing department.
11.8.1 Using an MES system to monitor

the maintenance intervals
Assignment of the production orders to a particular mold and machine com-

bined with the gapless acquisition of all information ensures that the com-
plete production history of a mold is recorded in the MES system right from
the start. The required maintenance intervals are input as well and moni-
toring then runs automatically, providing advance warnings and graphic
displays to show when a maintenance activity is necessary. In the system
Fig. 11.6. Monitoring maintenance and service intervals

11.8 Tool making 251
the operators must confirm that the maintenance has been carried out,
thereby meeting the mandatory recording requirement and fully document-
ing the procedure. Repairs, overhauls and cleaning are also documented in
the system and the corresponding information is available online in the net-
work for everyone involved in the production process.
In the plastics processing industry, investment in tools and machines
runs into tens of millions of euros. The personnel costs which have to be
paid for documentation, maintenance and repair work are also high. Com-
pensation costs or returns of items which, for example, arise in the auto-
motive industry as soon as promised servicing events cannot be complied
with or cannot be verified put profitability at risk. With manual manage-
ment of this, the outlay is also immense and still does not ensure compli-
ance with all requirements: a system of this kind holds too many sources of
potential error.
Compliance with requirements cannot be depended on unless all infor-
mation has been recorded in the MES system and events are automatically
triggered via warning and execution actions.
11.8.2 PDA and control station in tool making
A high proportion of plastics companies have their own tool making de-
partment in which the molds are built and maintained. The machines in
these departments also need to be scheduled and used efficiently. Due to
tight deadlines it is particularly important here to make the best possible
use of bottleneck machines. Whatever the case, monitoring of the times
specified for mold construction is necessary if the cost situation here is to
be kept under control. Not only machine times but also personnel times
must be recorded and assigned to cost units. Since an MES system in-
cludes the modules of machine data collection and staff work time logging,
it can be used in the tool making department.
On the basis of how the system has been installed in production it can be
expanded to include tool making. Here the existing network is used and the
existing master data can be used for parts and molds. Data acquisition at
the machine tools can be automatic, or manual data acquisition terminals
of the PC type are used, where the operator logs on or off.
11.9 DNC, batch tracking and mandatory in-process

documentation
As part of documentation obligations a documentary record of all events

throughout the full life cycle of a product is required. Due to the huge
amount of data required and the requirements for immediate serviceability,
this would be impossible without the use of automatic facilities. This is
where we feel the benefit of the fact that all information relating to ma-
chine, tool and material is already available due to gapless PDA acquisi-
tion. By inputting the batch numbers a link is created on the material side
to the batch and the duty of documentation is fulfilled for this part.
Communication between the MES system and the machines via inter-
faces can be used not only for transferring PDA and process data but also
for sending settings to the controller. This brings savings in the handling
process and, in addition, the individual production data associated with an
order can also be fully documented.
The huge amount of time which would otherwise have been needed for
manual documentation is saved completely while at the same time the qual-
ity of the data registered is considerably improved. It is easy to provide
a complaining customer with a proof that all data subject to mandatory
documentation really have been recorded. Customer inquiries in this regard
can be easily satisfied at minimal cost by means of database evaluations. In
Fig. 11.7. Batch documentation

11.10 Management Information System (MIS) 253
the case of quality problems, nonconforming parts can be easily identified

by batch tracing and then quarantined.
Figure 11.7 shows the batches and lot numbers of which a product is
composed. This allows tracing back to the material used and its correspond-
ing lot number. Furthermore it is also possible to ascertain into which other
lots the same material was input.
11.10 Management Information System (MIS)
Without an MES system an informative information structure is inconceiv-

able. Only when all data about production times, downtimes and reject
numbers are available in real time without omissions will management
have an informative information background at its disposal and be able to
make decisions on this basis. This calls for a powerful interface with the
ERP/PPS system. Here the data are exchanged in both directions. There is
a clear distribution of tasks between the two systems. The ERP/PPS sys-
tem runs the bill-of-material explosion and generates the production orders
for the individual work centers or work center groups. Here part numbers,
quantities and the end of the order are specified as part of rough planning
and transferred to the control station. Normally data transfer takes place
once or twice a day. Detailed planning using graphic resources is carried
out directly at the control station. This depends on the support of the PDA
data. For example, the status of a mold is known in the MES system (free,
scheduled elsewhere, under repair) and detailed planning can access this
information in real time. Data transfer from the MES system to the
ERP/PPS is responsible for the economic evaluation of the processes.
When objective data are linked in real time to the financial evaluation from
the ERP/PPS system, then you have a real management information sys-
tem (MIS). The transfer cycle can be specified by the ERP/PPS system
since all information is present in real time within the MES system.
It needs to be stated specifically at this point that planning and control
cannot be performed by the ERP/PPS system alone. Two arguments need
to be considered in this regard. First, the ERP/PPS systems are mostly not
able to act in real time. With the machine-hour rates which apply today,
even minutes have relevance to costs and decisions have to be taken very
quickly indeed. On the other hand, the planning scenario of an ERP/PPS
system always rests on a theoretical basis since a direct link to the produc-
tion data is missing. This means that active control of operations is only
possible to a very limited extent. This is why the use of an MES system is
indispensable for a modern and effective factory.
11.11 Return on investment
Using an MES system in the plastics industry brings the following advan-
tages:
Better flow of information
Production data with a high level of quality and accuracy
Creation of the necessary transparency in all areas
Uncovering areas of weakness
Departure from paper-oriented production
Shortening of lead times
Reduction in scrap quantities
Performance of mandatory in-process documentation
Increasing productivity
What follows shows the improvement in economic efficiency secured
when MES is used in an injection-molding company with 25 machines.
Calculations are based on savings in four areas. The automatic acquisition
at the machines of data relating to quantities and downtimes results in
a drastic reduction in costs compared with the manual collection of data
which would otherwise be necessary. This can be equated with savings of
€25,000. The MES system increases the utilization ratio by means of
online data and full transparency in production. In the experience of com-
panies deploying a system of this kind improvements of 1–4% are known.
For our purposes we shall assume an increase of 1% in the utilization ratio.
In relation to the net product of 25 machines, this results in a saving of
€30,000. Planning is considerably simplified and in the present case this
results in personnel savings of €16,000.
Quantitative and qualitative data acquisition, registration and evaluation
for all scrap results in a considerable reduction. If a reduction in scrap of
just 0.4% is assumed, with respect to turnover this yields a saving of
€15,000. Considerable savings arise from the fact that maintenance and
servicing management can be handed over in their entirety to the MES
system. Requirements are contained in the master data part and the current
status is continuously reported by the MES system. All required actions
are thus monitored automatically and displayed in graphic form on the
screen. Assuming that 15 minutes per month must be devoted to each pro-
duction resource, this yields potential annual savings of at least €9000.
With the values listed in this example, this means an annual saving of
€95,000. The author will be pleased to supply on request a detailed break-
down with parametrizable influencing factors.
11.11 Return on investment 255
Fig. 11.8. Example of an ROI analysis

11.12 Summary
Increasing competitive pressure and high quality requirements are forcing

companies in the plastics processing industry to exploit all possible meth-
ods of increasing economic efficiency. Here the use of an MES system is
one of the most important resources for achieving that. Real-time control
of the business processes and of controlling are the central conditions
which must be met if the company’s market share is to be maintained or
expanded. Exact information is needed and must be available in real time.
Only an MES system is capable of supplying these data.
That use will be made in the future of the advantages of such systems is
also shown by studies conducted by leading market research institutes
which forecast two-figure growth rates for the MES market in the next few
years.
Abbreviations
APO Advanced Planner and Optimizer (SAP APO)

BAPI Business Application Programming Interface
BSA Business Service Architecture (type of software architecture
particularly suitable for business models)
CAQ Computer-Aided Quality Assurance
DNC Distributed Numerical Control, Direct Numerical Control
EDI Electronic Data Interchange (standardized method of ex-
changing data between businesses)
EDP Electronic Data Processing
ERP Enterprise Resource Planning
ESA Enterprise Solution/System Architecture
ESA Enterprise Service Architecture (type of software architec-
ture particularly suitable for business models)
FDA Food and Drug Administration
GAMP Good Automation Manufacturing Process
IDOC Intermediate Document (special data format in the SAP
environment)
JDBC Java Database Connectivity (database access method for the
Java programming language)
KPI Key Performance Indicator
MDC Machine Data Collection
MES Manufacturing Execution System
MIS Management Information System
MM Materials Management
ODBC Open Database Connectivity (standardized database access
method under Microsoft Windows)
258 Abbreviations
OLE Object Linking and Embedding

OLTP Online Transaction Processing (procedure for real-time data
access; opposite of data warehouse)
OPC OLE for Process Control (Windows-based interface for data
exchange between two systems)
OPC OLE Process Communication
PDA Production Data Acquisition
PI-PCS SAP-interface for Process Control Systems
PM SAP Maintenance
PP SAP Production Planning
PP-PDC Plant Data Collection
PP-POI Production Optimizing Interface
PPS Production Planning and control System
QA Quality Assurance
QM-IDI Inspection Data Interface
RFC Remote Function Call (interface for data exchange between
two systems)
RFI Radio Frequency Identification
RFID Radio Frequency Identification
ROI Return On Investment
SAP GUI SAP Graphical User Interface
SAP-HR SAP personnel management
SAP-QM SAP Quality Management
SQL Structured Query Language (query language for relational
databases)
TCP/IP Network protocol for both intranet and internet
VDI Verein Deutscher Ingenieure
WIP Work In Process
WLAN Wireless LAN (network based on radio waves)
XAPP Cross-Application
XI Exchange Infrastructure
Checklist
Preliminary note for the user
As a rule it is a difficult task to identify criteria for selecting an MES sys-

tem – and thus an MES system supplier – and anyone trying to do so can
rapidly be overtaxed. The more you understand about the matter, the
harder it becomes to keep an overview of it. Where should you start and
where should you stop? Once you’ve looked at different system presenta-
tions it is difficult to see where they differ; suddenly all user interfaces
look the same.
MES systems are complex IT installations which, depending on the
form they take, can affect a large number of functional areas in a manufac-
turing company. Possibilities for using the systems range from straight-
forward PDA feedback regarding quality assurance and personnel man-
agement to complex detailed scheduling control systems.
When objectives have been defined, a very much better assessment can
be made of the scope of services offered by different systems and suppli-
ers. For example, if you want to start with machine data collection but
already know that in one or two years the company will be tackling the
subject of incentive wages, you can immediately lay down KO criteria.
Any potential supplier not able to integrate a staff work time logging func-
tion and a performance-based remuneration function can then be ruled out
at once.
With our proposal we intend First to point out once again the possible
objectives which can be secured by introducing an MES system. This will
usually mean that even quantifiable approaches can be found which then
form the basis for calculating a return on investment.
This procedure is more efficient and involves less work. In addition, the
level to which objectives have been achieved can be better checked for the
purpose of subsequent investment controlling.
The following checklist should provide some assistance in designing
and selecting MES systems.
It should be taken as a suggested way of systematically evaluating dif-
ferent MES systems and of drawing up selection criteria on this basis.
260 Checklist
General criteria
Does the MES system have fully integrated production, personnel and
quality management?
Does the MES support paperless (low-paper) production?
Does the MES system include all necessary standard products?
Does the MES offer escalation management and workflow functions?
What references and knowledge of the industry does the supplier have?
How easy is it to adapt the functionalities to the customer’s processes?
Does the MES manufacturer have a clear standard product and release
strategy?
System concept
Is the complete MES functionality provided in a single system?

Can the individual components be used as modules?
Can the functions be configured?
Does the MES system have an ESA-oriented architecture?
Does the MES system orient itself by common industry standard products?
Does the MES system support the necessary platforms?
Does the MES system support the necessary interfaces?
How easy is it to adapt interfaces to the requirements of the customer?
How easily can the clients be adapted to the requirements of the customer?
What possibilities does the MES system offer for the customer’s own de-
velopments?
Can these adaptations be made just as easily at a later point in time?
What aids are available for preparing one’s own analyses?
Can the existing analyses in various levels of data aggregation be adjusted
for all corporate levels?
Is there an interface with leading ERP and PPS systems?
Does the modular architecture of the MES system permit a gradual expan-
sion to include further functions?
Is the system architecture open?
Production
Are there integrated functions which offer a view of all resources involved
in production?
Are there overviews which allow evaluation of the current situation?
Are the detailed planning functions based on current PDA data?
Checklist 261
Does detailed planning manage primary and secondary resources?

Is there a load planning function for different kinds of secondary resources?
Is it possible to model different possibilities of technological relationships?
Is inter-order networking possible?
Can the types of capacity be varied?
Are different planning strategies supported?
Can detailed planning instances be evaluated by means of flexible and
combinable key data?
Can alternative planning variants be simulated?
Can different optimization strategies be implemented?
Does the MES support different production structures (multiple machine
work, multiple operator work, and so on)?
Is material tracking possible (in batches and buffer storage, for example)?
Quality
Can quality inspections be incorporated like work operations in an overall

order structure?
Is there a dynamic configuration function for monitoring testing and in-
spection equipment?
Is non-conformance management workflow-supported?
Is gapless traceability of the production process possible?
Does production planning have access to quality data?
Can process (measurement) data also be used as quality characteristics?
Is there support for automatic transfer of measured data via standard inter-
faces?
Personnel
Is staff work time logging with information and intelligence functions

available at the terminal?
Can working hours and payments models be configured simply for per-
sonnel time management?
Is there a workflow for paperless processing of applications and approvals?
Is it a straightforward matter to adapt calculation of incentive wages to
collective bargaining agreements?
Is there a short-term manpower planning function with direct coupling to
production loading?
262 Checklist
Is there a short-term manpower planning function which automatically

assigns employees on the basis of their qualifications to work centers at
which orders have been scheduled?
Data acquisition
Does the MES permit gapless automated data acquisition and processing?
Are standard interfaces provided to machines and automatically controlled
machines?
Can all data acquisition functions be integrated in a single data acquisition
terminal?
Can data acquisition functions be configured for better ergonomics and
thus greater acceptance?
Are standard data acquisition interfaces such as OPC or Euromap 63 sup-
ported?
Are the data acquisition functions available on different platforms touch
screen terminal, mobile terminal, PC, the web?
Is data acquisition supported by suitable peripheral devices such as ID
readers of the most varied types, label printers and so on?
MES in the SAP environment
Does the manufacturer of the MES system have the corresponding SAP
know-how?
How high is the number of implementations with SAP manufacturing cus-
tomers?
Does the MES manufacturer have consultants with SAP application know-
how?
Is the manufacturer certificated for application interfaces such as PP-PDC?
Does he have the “Powered by NetWeaver” certificate?
Does the system support the following SAP interfaces?
Production control PP-PDC, PP-POI
Materials management MM-MOB
Quality management QM-IDI
Production process industry PI-PCS
Quantity production BAPI for plan orders
Can BAPI’s be used?

Checklist 263
Does the manufacturer have his own in-house SAP development and test-
ing system for customer-specific implementations and support?
Updating
In practice there are continuous further developments in fields such as

interfaces, statutory requirements, software tools, requirements emerging
from daily activities, and so on
The authors
Bernd Berres, born 1971, C. Eng. (BA) After

graduating in technical informatics from the
Mosbach Vocational Institute, he became prod-
uct manager for staff work time logging in MES
HYDRA at MPDV Mikrolab GmbH. Also re-
sponsible for access control, short-term man-
power planning and performance-based wage
calculation and their further development.
Otto Brauckmann, born 1938, master’s degree

in business economics
Studied business economics at the Ludwig-
Maximilian-Universität in Munich, majoring in
cost accounting.
Since 1984 an independent consultant and dis-
tributor for systems for production data acquisi-
tion and quality assurance.
In 2002 Integrated Production Data Manage-
ment published by Gabler Verlag. Co-author of
Manufacturing Scorecard (2004) published by
Gabler Verlag.
266 The authors
Andreas Cordt, born 1966, master’s degree in

statistics from the University of Dortmund ma-
joring in quality management.
Followed by employment in a software com-
pany with responsibility for CAQ software
sales. Joined MPDV- Mikrolab GmbH in Janu-
ary 2004 specializing in consulting.
Rainer Deisenroth, born 1953, C. Eng. After

graduating in technical informatics, worked in
hardware and software development in the field
of measuring instruments and computer sys-
tems, including at Bopp & Reuther GmbH in
Mannheim. Following a change to the fields of
product management and marketing, joined
MPDV Mikrolab GmbH in 1990 where he was
responsible for setting up a sales and marketing
organization. Currently an authorized company
signatory and head of MPDV Sales.
Leonhard Fleischer, born 1964. C. Eng. (BA)

Studied mechanical engineering at Mosbach
Vocational Institute, majoring in design engi-
neering. Specialized in plastics processing (in-
jection molding).
In 1987 joined MPDV Mikrolab GmbH in Mos-
bach. Since 1991 head of software develop-
ment.
The authors 267
Martin Geppert, born 1964, master’s degree in

information sciences.
Studied information sciences with business
management at the University of Karlsruhe
(TH).
Master’s thesis on knowledge-based planning of
production systems.
Since 1991 employed at MPDV Mikrolab
GmbH in Mosbach in support organization.
Since 2001 head of the Consulting and Training
departments of MPDV Mikrolab GmbH.
Rainer Glatz, master’s degree in information

sciences from University of Karlsruhe. Since
1981 research assistant at the Institute for Com-
puter Applications in Planning and Design of
the University of Karlsruhe.
Since 1987 consultant in the Informatics de-
partment at the VDMA in Frankfurt.
Since 1990 head of the Informatics department
at the VDMA and since 1999 head of its Soft-
ware professional association.
Since 2000 head of Industrial Communication
professional association.
Torsten Keil, born 1971, electronics engineer.

Since 1993 software developer at CS Informatik
GmbH. In addition to programming quality
management solutions, project manager in sys-
tem introductions.
Since 2004 head of software development in the
quality assurance division at the Stuttgart
branch.
268 The authors
Dr. Jürgen Kletti, born 1948, studied electrical

engineering majoring in technical data process-
ing at the University of Karlsruhe. After
graduation founded MPDV Mikrolab GmbH, of
which he is still a partner and CEO today. Since
1990 MPDV has been primarily involved with
software products and services for manufactur-
ing industry. MPDV’s flagship product is the
MES system HYDRA.
Wolfhard Kletti, born 1958, master’s degree in

information sciences from the Technical Engi-
neering College of Mannheim.
Freelancer at IBM and in projects at the ETH
Zürich.
University of Karlsruhe specializing in data-
bases for engineering applications. Joined
MPDV Mikrolab GmbH in 1986. Today mem-
ber of general management with the specialist
field of consulting.
Wolfgang Nonnenmann, born 1945, C. Eng.

Studied electrical engineering, majoring in
closed-loop control systems and electronic data
processing at the University of Karlsruhe. Fol-
lowing graduation, worked at Bosch’s devel-
opment center for automotive equipment in
Stuttgart.
Founded the company IBN-Systems which
specialized in production data acquisition in the
fields of plastics and automobiles. Today active
as an consultant in the field of production man-
agement, PDA and PPS/ERP.
The authors 269
Thorsten Strebel, born 1972, C. Eng. (BA).

Studied technical informatics at Mosbach Voca-
tional Institute, majoring in production informa-
tion systems.
After graduating, management consultant on the
implementation of development projects, spe-
cializing in object orientation.
Since 1997 senior consultant at MPDV Mikro-
lab GmbH specializing in production data ac-
quisition, material flow acquisition and detailed
planning. Head of the SAP Competence Center.
Index
3 F
3-level structure 20 Function group
personnel 26
6 production 24
6 R’s rule 16 quality 25
A G
Access control 27 Group work 37
Agent control 7
APS functions 12 I
Automation level 9 Improvement process 3
Incentive wages 27
B Incoming goods 26
Bonus payments scheme 37 Inspection equipment management
Business processes 53 26
Interfacing costs 53
C
Central planning 56 K
Certification standards 35 Kanban 6
CIM concept (Computer-Integrated
Manufacturing) 13 L
C-MES (Collaborative MES) 18 LAN 34
Control station, planning tablet 25 Layout by machine 4
Control stations 12 Line and continuous production 5
CONWIP 6 Line structure 4
Corporate network 34
Cumulative number concept 6 M
Make-to-order production/plant and
D equipment manufacturing 10
Degrees of freedom 30 Manufacturing Execution Systems
Discrete or shop production 10 (MES) 13
Manufacturing Operation System
E (MOS) 21
Escalation management 27 Manufacturing scorecard 36
272 Index
MDC Process lines or mass production 10

machine data collection 24 Process potentials 35
MESA (Manufacturing Execution Process transparency 35
System Association) 17 Production and service economies
MOS 42
Manufacturing Operation System Pull principle 5
20 Push principle 5
MPL
material and production logistics R
25 Rough planning 8
MRP II (Manufacturing
Requirement Planning) 6 S
Shop production 4
N Short-term manpower planning 27
NAMUR 21 So-called MES (Manufacturing
NCM Execution System). 3
non-conformance management SPC
26 statistical process control 26
Networking 1 Staff work time logging 26
Supply chain management 1
O Synchronous production 6
OEE index 36
One-way street principle 12 T
Order release, load-dependent 6 Transparency 13
TRM, DNC (tool and resource
P management) 25
PDA
product data acquisition 24 V
PDP Value chain 42
process data processing 26 VDI (Verein Deutsche Ingenieure)
Potential benefits 3 22
Printing costs 51 VDI guideline 22

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Jürgen Kletti (Ed.

Dr.-Ing. Jürgen Kletti (Ed.)

Library of Congress Control Number: 2007923512

ISBN 978-3-540-49743-1 Springer Berlin Heidelberg New York

The transformation of the classic factory from a production facility into

whereby NAMUR, an association of process manufacturers, has come up

Professor Johann Löhn

1 New ways for the effective factory...................................................... 1

2 MES for process capability ................................................................. 41

2.3 Process capability in collaboration.............................................. 48

3 Added value from software.................................................................. 61

4 MES: the new class of IT applications................................................ 81

4.3.3 The concept of the “manufacturing cockpit” ................. 89

5 Building an MES system ..................................................................... 99

6 Integrated production management with MES................................. 119

6.6 MES information for production management............................ 135

7 Detailed planning and control with MES ........................................... 141

8 Quality assurance with MES ............................................................... 169

8.4 Documented quality.................................................................... 185

9 Personnel management with MES ..................................................... 199

10 MES with SAP...................................................................................... 213

10.4.3 Interfacing on the machine and control levels ................ 232

11 MES in plastics processing................................................................... 241

Checklist ......................................................................................................... 259

The authors .................................................................................................... 265

Index ............................................................................................................... 271

1.1 Requirements for tomorrow’s manufacturing

encourage customers to make rapid changes in their purchasing habits. The

production planning can be set up which is characterized by short reaction

1.2 Production structures

The aim of achieving an improvement in economic efficiency is not, of

1.2.1 Orientation towards metrics

Different factors must be taken into account in the selection of suitable

Production in decentralized structures

Line flow production

1.2.2 Control methods

 MRP II (manufacturing requirement planning)

1.2.3 Combinations of production structure

1.2.4 Weaknesses in traditional PPS systems

Despite some sophisticated control methods, traditional production plan-

 Planning with uncertain planning input data (processing times, machine

1.2.5 Function levels

The production structures and control methods considered in the previous

The production level (automation level)

1.2.6 Types of production

Three different so-called production types are to be distinguished. These

Discrete or shop production

Process lines or mass production

Make-to-order production/plant and equipment manufacturing

1.3 Classic IT support in production

In the early years of information technology, manufacturing enterprises

possible to achieve considerable reductions in the cost of data acquisition

1.4 Manufacturing Execution Systems (MES)

Fig. 1.4. MES integrates originally separate data collection systems

A product will not be created in the most economically efficient

If the networked data collection systems are supplemented with elements

Fig. 1.6. Dependence of control requirements on planning time

1.4.2 Current standards

The subject of MES has been taken up by a number of institutions which

 Detailed planning (operation/detailed scheduling)

Fig. 1.7. The function structure of the MESA model

between automation and corporate management but it is also seen as a data

Fig. 1.8. The ISA 3-layer architecture

MRP II (manufacturing requirement planning)

Planning with uncertain planning input data (processing times, machine

Detailed planning (operation/detailed scheduling)

Short-term scheduling takes capacity limitations into account and en-

Inventory overviews obtained by connecting together materials man-